Party City may file for bankruptcy a second time and close at least 700 stores nationwide, according to multiple reports. The New Jersey-based retailer emerged from bankruptcy, still with more than $800 million in debt that it simply cannot overcome.
Party City was hit hard in recent years by the COVID-19 pandemic lockdowns, supply chain issues and inflation. The company noted a helium shortage hurt its ability to inflate party balloons, impacting business.
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Slowing consumer demand and competition from big box stores like Walmart and Target were also factors.
Party City began its business in New Jersey in 1986. Private equity firms acquired the company and took it public in 2015.
In 2023, the retailer filed for bankruptcy, slashed $1 billion in debt and closed about 60 stores across the U.S.
The company hired a financial adviser to help it navigate through the bankruptcy process.
Party City did not comment on the reports of its financial troubles or that major closures are coming.
IT APPEARS THE PARTY IS OVER, FOR PARTY CITY. THE NEW JERSEY BASED RETAILER HAS EMERGED FROM BANKRUPTCY, STILL WITH MORE THAN $800 MILLION IN DEBT, THAT IT SIMPLY CANNOT OVERCOME.
THE WALL STREET JOURNAL, CITING SOURCES, IS REPORTING THAT PARTY CITY IS GETTING SET TO FILE FOR BANKRUPTCY YET AGAIN AND THIS TIME CLOSE ITS 700+ STORES NATIONWIDE.
PARTY CITY WAS HIT HARD IN RECENT YEARS BY THE COVID PANDEMIC LOCKDOWNS, SUPPLY CHAIN ISSUES, AS WELL AS INFLATION. IN ADDITION, THE COMPANY NOTED THAT A HELIUM SHORTAGE HURT ITS ABILITY TO INFLATE
PARTY BALLOONS AND THE COMPANY’S BOTTOM LINE SUFFERED.
SLOWING CONSUMER DEMAND AND COMPETITION FROM BIG BOX STORES INCLUDING WALMART AND TARGET WERE ALSO FACTORS.
PARTY CITY ORIGINALLY BEGAN IN WOODCLIFF LAKE, NEW JERSEY IN 1986.
PRIVATE EQUITY FIRMS LATER ACQUIRED THE COMPANY AND TOOK IT PUBLIC IN 2015. IN 2023, IT FILED FOR BANKRUPTCY, SLASHED $1 BILLION IN DEBT AND CLOSED ABOUT SIXTY STORES, IN STATES INCLUDING NEW YORK, KANSAS, MISSOURI AND KENTUCKY.
ANALYSTS SAY THE RETURN TRIP TO BANKRUPTCY IS EXTREMELY QUICK FOR A RETAILER.
ORIGINAL OWNER STEVE MANDELL TOLD THE NEW YORK POST. “ We were the discount party superstore. Today, it is not a discount store. The prices are top dollar.”
THE COMPANY HAS NOW HIRED A FINANCIAL ADVISER TO HELP IT NAVIGATE THROUGH THE PROCESS. PARTY CITY DID NOT HAVE ANY COMMENT ABOUT ITS MONEY TROUBLES AND REPORTS THAT WIDESCALE CLOSURES ARE COMING.
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