Party City Set to Exit Bankruptcy With $1 Billion Debt Reduction

Party City’s Chapter 11 bankruptcy plan, aimed at reducing approximately $1 billion in debt, has received approval from a U.S. bankruptcy judge. This plan will transfer all of the equity value to the retailer’s lenders and is expected to strengthen the business, leading to the closure of only a few out of its nearly 800 stores while preserving numerous jobs. The bankruptcy filing, which was made in January, was driven by factors such as high inflation, ongoing pandemic impacts, and helium sourcing difficulties for its balloons.