Party City Files for Bankruptcy Protection

Rockland Daily Staff 

Party City, whose purpose is "Celebrating for Life," is facing financial trouble and has filed for Chapter 11 Bankruptcy Protection. 

This news comes amid many businesses struggling to survive the rising prices of goods and reduced customer spending. 

Party City Holdco Inc. initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. The filing occurred after most of its senior secured noteholders agreed to support a pre-negotiated, expedited restructuring. The goal is to reduce the company's debt and optimize liquidity significantly.

According to their press release, Party City has secured a commitment for $150 million in debtor-in-possession financing. Subject to Court approval, this "new money" financing will provide the company with ample liquidity to support continued operations across all channels and fulfill commitments to valued team members, customers, and suppliers during the process while maintaining momentum on its transformation.

The company continues to welcome shoppers at the more than 800 Party City stores and online. The Party City store located at 123 Rockland Center, Nanuet, is still open for business.

Party City wrote in a letter to customers, "We plan to continue honoring store credits, special offers, and promotions, and we anticipate no changes to our policies regarding returns, exchanges, refunds, and the like."

Party City expects the company restructuring to be completed in the second quarter.