Party City Holdco, Inc. was everything but joyful this week, according to Bloomberg, as the company appears to be ready to file for bankruptcy and perhaps hand over ownership to creditors.

According to Reuters, the party supply supplier, which claims to have over 800 stores in North America, has recruited AlixPartners as a restructuring counsel.

According to Bloomberg, the shop, known for party items and decorations such as balloons, has struggled due to a helium scarcity, excessive inflation, and altering consumer behavior. Investors were apparently also disappointed by low Halloween sales.

Party City, which has approximately $92 million in cash against $1.8 billion in debt, is in talks with a debtholder group regarding a debt-for-equity swap, according to Bloomberg.

According to the publication, the company is set to miss a debt payment in February, and creditors are prepared to take control of the company if a deal is reached.
At the close of the market on Friday, the company’s shares sank to 18 cents on the dollar in response to the news.

While some traditional stores, such as Dollar Tree and Dollar General, have thrived in the aftermath of the COVID-19 pandemic, others, such as Party City, Bed Bath and Beyond, and Things Remembered, have faltered.

Following lower-than-expected sales, Bed Bath & Beyond, which is $1.2 billion in debt, claimed it is experiencing a financial crunch and is considering bankruptcy, according to CNBC.

Things Remembered, an Ohio-based gift company with about