FILE A shopper leaves a Party City store in Vernon Hills, Ill., Thursday, Oct. 15, 2020. Party City Holdco Inc. has filed for Chapter 11 bankruptcy protection, Wednesday, Jan. 18, 2023 as the party supply chain confronts inflationary pressures and a pullback in consumer spending. The party supplies chain, which operates more than 800 company-owned and franchise stores throughout North America, has been long struggling with increased competition from the likes of Walmart and Target. (AP Photo/Nam Y. Huh, File) (Nam Y. Huh, Copyright 2020 The Associated Press. All rights reserved.)
NEW YORK – Party City is filing for Chapter 11 bankruptcy protection after struggling with rising prices and a pullback in customer spending.
The company, which operates more than 800 company-owned and franchise stores throughout North America, has faced increased competition from Walmart and Target. That pressure has intensified in an era of rising prices, including for helium used in party balloons, and slowing consumer demand.
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The company has secured a commitment for $150 million in debtor-in-possession financing.
It said the financing, which is subject to court approval, would provide ample cash to continue operations.
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