A shopper exits a Party City Holdco Inc. store. New York, US, Wednesday, November 7, 2018. Party City Holdco released earnings figures on November 8.
Bloomberg
Party City and some US units have filed for Chapter 11 bankruptcy, as retailers look to restructure debt and compete more for sales as consumers’ wallets hit inflation.
According to a filing with the US Securities and Exchange Commission, the company said it agreed on Tuesday to reduce debt.
Party City tapped retail consultant AlixPartners in November as its financial advisor. In January, David Orlofsky, a managing director at the company, became the chief restructuring officer.
Party City shares were up 10% and closed in pre-market trading on Wednesday. At Tuesday’s close, shares were trading at just 37 cents and the company’s market value was about $42 million.
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