Elmsford, NY — Party City Holdco Inc., the parent company for Party City stores, has filed for Chapter 11 bankruptcy protection.
The company was forced to file following a rise in overall costs and a slowdown in customer spending.
They have also faced increased competition from other companies like Walmart and Target for several years.
While the company has filed for bankruptcy, its more than 800 stores will remain open due to a deal they have struck with Ad Hoc Group.
The group has agreed to provide $150 million in debtor-in-possession financing to Party City as they work to restructure their business and free up cash.
The Party City franchise stores, subsidiaries outside of the U.S., and its foil balloons Anagram business will not be a part of the restructuring and will remain a core part of their operations.
In addition to shopping in-store, customers will also be able to continue shopping online.