The second bankruptcy of a fan favorite retailer is almost complete. Now a business conglomerate will have the specialty bond.
Party City, the once popular balloon, costume and party shop, announced that it has sold most of its assets when it ends the activities.
The company auctioned its remaining intellectual property and wholesale activities to New Amscan, a company that is known for owning brands such as Chia Pet and the Clapper.
Amscan, a branch of AD Populum, supplies party supply products to major brands such as Target and Amazon.
In the meantime, the party city continues to sell its fleet of store locations and lease contracts. The retailer announced in December that all 850 of his stores would close.
Dollar Tree and Five below offer a considerable number of former retail rental contracts from Party City.
The lease takeovers generated $ 14.5 million in gross revenues for the bankrupt brand. More than 100 more former lease agreements for the city city remain on the market.
Both auctions for store locations and intellectual property come after the years of deterioration of the Party City.
Partijdad announced in December that it closed all 850 stores
Party City went bankrupt in January 2023 for the first time.
At the time, the brand reported that the sale dropped when Shoppers stopped throwing parties and social events during the COVID-19 Pandemic Lockdowns.
This pressure, along with inflation and reduced discretionary expenses, further weakened the position of the retailer.
Subsequently, the helium prices were shown, flattening for the iconic balloon company of the brand.
The stock prices for the brand fell to around $ 0.40 before the first bankruptcy.
The company stemmed from the first bankruptcy in October 2023 after it had paid almost $ 1 billion in debts.
But sales trends in the market stayed away from the brand's business model.
Specialty Chains such as Spirit Halloween ran away on the seasonal dominance of Party City, while larger competitors such as Amazon and Target have expanded their party offers.
The party shop struggled after the prices of helium prices had been extracted and customers turned their business to other retailers
Multiple brands have placed bids on the remaining lease contracts from Party City
CEO of the City Barry Litwin party brought the devastating news to employees that the chain was concluded during a video conference interview
Both trends expressed retailers who were dependent on traditional physical sale.
Eventually delaying operations became the death knit of the independent retailer. Party City submitted its second bankruptcy in December 2024.
In a video call for employees, the last CEO of Party City said that the store had to be closed despite the very best efforts of the employee.
“It is really important for you to know that we have done all the possible that we may have done to avoid this result,” Litwin added. “Unfortunately, it is necessary to immediately start a Winddown process.”
AD Populum, the owner of Amscan, now wants to transform the PartyTad and Amscan brands as it expands its presence on the market for party facilities.
The company also owns Rubies, a Halloween customer designer and distributor, and Graceland, dedicated the museum to the inheritance of Elvis Presley.
“We are delighted to lead the transformation of the party city and Amscan brands,” said Joel Weinshanker, CEO of Ad Poppy, in a statement. “By combining our strengths in Sourcing and distribution with the inheritance of Party City, we have faith in our ability to innovate and grow on the market for party provision, supply products that inspire and elevate the celebrations of life.”
