Party City, amid rising prices, seeks bankruptcy protection
Jan 18, 2023, 11:30 AM
Exterior view of a Party City store on January 18, 2023 in Miami, Florida. Party City Holdco Inc. filed for Chapter 11 bankruptcy protection in a bid to restructure its heavy debt load after supply chain problems, rising inflation and a consumer slowdown have hurt sales (Photo by Joe Raedle/Getty Images)
(Photo by Joe Raedle/Getty Images)
NEW YORK (AP) — Party City is filing for Chapter 11 bankruptcy protection after struggling with rising prices and a pullback in customer spending.
The company, which operates more than 800 company-owned and franchise stores throughout North America, has faced increased competition from Walmart and Target.
That pressure has intensified in an era of rising prices, including for helium used in party balloons, and slowing consumer demand.
The company has secured a commitment for $150 million in debtor-in-possession financing.
It said the financing, which is subject to court approval, would provide ample cash to continue operations.
