New Chapter 11 Filing – Party City Holdco Inc.

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On January 17, 2023, Party City Holdco Inc. (“Party City”) and certain of its affiliates and direct and indirect subsidiaries (“Debtors”), filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas, Houston Division (Case No. 23-90005 (DRJ)).  As set forth in the first day declaration, Party City operates in 70 countries and purports to be the largest integrated designer, manufacturer, distributor, and retailer of party goods in North America.  Its supply chain and business revenue have been impacted by lockdowns, store closures, helium shortages and forty-year high inflationary pressures. 

In the petition, Party City list $1 billion to $10 billion in both assets and liabilities.  The Debtors seek to quickly implement a restructuring plan and have entered into a restructuring support agreement with an ad hoc group comprised of more than 70% of their senior secured first lien notes.  The goal is to make significant reductions to Party City’s overall debt and improve its liquidity and overall capital structure. 

Cole Schotz P.C. does not represent the Debtors in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtor’s counsel. 

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York and Texas.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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