Party Supply Chain Closing Over 20 Locations
Party Supply Chain Closing Over 20 Locations
The popular party supply store, Party City is filing for Chapter 11 bankruptcy. As a result, they will be auctioning off 12 stores with another 10 set to close in this month.
As you can imagine, not many people were hosting large gatherings during the height of the pandemic.
The effect this had on Party City was detrimental to their continued success.
They never quite recovered from the loss of the last couple of years.
More of their locations will most likely close later this year. Especially now that as of last Thursday they have officially filed for Chapter 11 bankruptcy.
They have already closed and vacated another 28 stores in other states, according to Business Insider.
Sales were down over 3% last quarter and they have approximately $1.6 billion dollars in debt. The company is hoping the bankruptcy claim will help them manage some of this debt and ultimately stay in business.
While locations in West Paterson, NJ and Manhattan, NY are set to close, there is no word of locations in PA or DE being affected.
According to the Feb. 16 press release, A&G will continue “auctioning additional leases in the weeks ahead, with the total number depending on the outcome of ongoing negotiations between A&G and Party City landlords.”
A&G Real Estate is operating as the advisor to Party City Holdco Inc.
“We have a wide variety of users who have begun showing interest, including gyms, dollar stores, local retail operators, furniture users, local specialty retailers, and non-retail users such as medical,” A&G Managing Director Alexandra Graiser said in a statement.
Party Supply Chain Closing Over 20 Locations