Bergen Co.-Based Party City Files For Chapter 11 Bankruptcy

BERGEN COUNTY, NJ — As Party City facilitates an "expedited restructuring," the company and its domestic subsidiaries filed Chapter 11 petitions for relief in the Bankruptcy Court, the Bergen County retailer said.

A market leader in the celebrations space, Party City said the company, which is headquartered in Woodcliff Lake, is restructuring to reduce debt, optimize asset structure and provide liquidity.

Party City's subsidiaries outside of the U.S., its more than 800 franchise stores, and Anagram foil balloons business are not a part of the bankruptcy proceedings and will continue as major components of the company, the retailer said.

Shoppers can still visit the franchise stores and browse online for supplies and decorations, as the retailer advances "transformational initiatives" and enhances "market leadership."

Such initiatives will include converting stores to "next-generation prototypes," evolving Halloween City pop-up stores, innovating the online shopping experience, establishing localized marketplaces, delivering more appealing assortments for customers.

A $150 million debtor-in-possession loan from an ad hoc group will "provide ample liquidity" to support Party City during the restructuring process, which is expected to reach completion in the second quarter of 2023.

"(The) action to strengthen (Party City's) balance sheet will bolster our ability to advance strategic priorities, and elevate the customer experience," Party City Holdings CEO Brad Weston said. "As we take this important step to put our business on stronger financial footing, we are as committed as ever to inspiring joy for our customers."