The party’s over for Party City.
The New Jersey-based retailer will close all of its stores after running out of money to remain operational.
The company considered filing for bankruptcy for the second time earlier this month, having initially filed for bankruptcy last year because it was having difficulty paying rent at some locations.
Party City, known for selling balloons and other party supplies, first filed for Chapter 11 bankruptcy protection in January last year, seeking $150 million in debtor-in-possession financing to support its operations. million and had a reported net worth of $1 billion to $10 billion. And liabilities.
In September, the retailer reached a bankruptcy exit plan in which approximately $1 billion of the company’s debt was canceled and all of its equity value turned over to the retailer’s lenders.
Troubled retailers often seek bankruptcy protection after the holiday season to take advantage of cash provided by recent sales.
This is a developing story. Check back for updates.
