Party City Holdco Inc. has filed for bankruptcy, a last blow to the shop, which has failed to recover after sales fell during the epidemic.
According to court filings, the company filed for Chapter 11 bankruptcy in the Southern District of Texas on Tuesday. It listed assets ranging from $1 billion to $10 billion, as well as liabilities in the same range.
Even before Covid-19, the New Jersey-based party supply store was struggling. The pandemic exacerbated tensions by preventing the company’s lifeblood, celebrations, from taking place. It also experienced other challenges, such as a helium shortage, which hampered balloon sales, while supply chain concerns and hesitant consumers weighed on earnings.
The company undertook a series of financial maneuvers to buy itself time to bounce back during the pandemic, but sales have lagged below pre-pandemic levels. In recent weeks, it began laying the groundwork for a bankruptcy filing, Bloomberg reported.