Party City filed for bankruptcy Tuesday following years of losses and declining sales.
In a regulatory filing, the retailer revealed that it had reached a deal with its debtholders to cut a total of $1.7 billion in debt load and secured $150 million in financing, which will allow it to keep its stores and operations running.
As of last year, the retailer had a physical footprint of 761 Party City stores and 149 Halloween City stores, which are supported by more than 16,000 workers who work in a full- and part-time capacity.
Party City had been losing business for the past several years to big box retailers, eTailers, and specialty retailers such as Spirit Halloween. The company also struggled with rising costs during the pandemic and a shortage of helium gas, which is essential to its balloon sales.
Just between 2017 and 2021, the company’s sales declined by 8% to $2.2 billion, according to CNN. During the same time frame, the company continued to lose money, with losses racking up to $199 million in 2022.
In December last year, the company reportedly said it was at risk of being delisted from the New York Stock Exchange as its average stock value fell under $1 per share for 30 trading days.