Halloween hotspot Party City Holdco Inc filed for bankruptcy on Wednesday, announcing a pre-negotiated agreement with a bondholder group to restructure mounting debt. The company will undergo what it called an “expedited restructuring,” which it expects to be done by the second quarter of 2023. CEO Brad Weston blamed the pandemic, a global supply chain crisis, and other “macroeconomic challenges” facing the industry for their financial woes. The New Jersey-based retailer said it had some $150 million in debtor-in-possession financing to support ongoing operations at its 800 locations, following through on wages, benefits and supplier contracts, though the transfer is subject to court approval. “Today's action to strengthen PCHI's balance sheet will bolster our ability to further advance our strategic priorities and continue to innovate and elevate the customer experience,” said Weston.
