Party City Files for Bankruptcy to Restructure Debt

Retailer Party City has filed for Chapter 11 bankruptcy protection in a bid to restructure its heavy debt load and keep its doors open after supply chain woes, rising inflation and a consumer slowdown took a chunk out of sales.

The longtime retailer, best known for its Halloween costumes and party decorations, has been saddled by historic inflation and a shrinking market cap. It decided to move forward with bankruptcy in November after financial advisors determined it was the best way to save the business, the retailer wrote in a Wednesday court filing.

Party City’s business had been growing and reached approximately $2.35 billion in revenue by 2019. But for years, it’s faced rising competition from e-commerce brands and big-box retailers. And instead of growing its digital business, the company burned cash keeping some 800 stores across the country open.

Read the source article at cnbc.com