Party City filed for . Chapter 11 bankruptcy protection on Tuesday, making it the latest casualty of. pandemic The U.S. retail industry as high inflation weighs on consumer spending.
Troubled retailers often seek. Dankruptcy protection during the holiday season to take advantage of. The cash cushion provided by recent sales.
Bed Bath & Beyond raised . Doubts about its ability to continue as a going concern earlier this month. pandemic
Woodcliff Lake, New Jersey-based Party City said it has reached a pre-negotiation agreement . With a bondholder group to support an “accelerated restructuring . That is expected to be completed in the second quarter.
It reported assets and liabilities . Estimated at $1 billion to $10 billion, and said it received $150 million in . Debtor-in-possession financing to support its operations.
The party supply retailer’s fortunes have declined since . the Covid-19 pandemic as it struggles with slowing sales . Due to lockdowns and store closures, as well as tight. Supplies of helium due to inventory shortages and global supply chain disruptions.
The company. which owns and operates more than 800 franchise stores across . North America, also struggled with higher freight, labor and raw . Material costs as it pushed forward shipping timelines to ensure . Enough products on its shelves.
While its subsidiaries outside the US, its franchise stores and its Anagram. Business were not part of the bankruptcy proceedings, the company said. Its stores would remain open.
Shares of the party . Products company rose 11% to 41 cents before the premarket close on Wednesday. pandemic The stock fell as much as 57% on Jan. 6 after the . Wall Street Journal reported that the company could file for. Bankruptcy within the week.
