Party City is winding up its non-performing stores.
Party City is a U.S based publicly traded retail chain of party stores established in 1986 by Steve Mandell.
The enterprise had filed for bankruptcy. However, the rigid phase has forced them to close 22 stores at the earliest. As a result, some closures will occur toward the end of February.
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Twelve Party City leases in six states will be put up for auction, according to A&G Real Estate Partners.
“Given the high cost of new construction in today’s marketplace, the lack of new development, and the strong attributes of many of these Party City locations, we expect good interest from local and regional tenants who see this as an opportunity to open in a fully built-out retail box and begin doing business within three months,” says A &G.
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Party City is into enhancing celebrations with its outstanding collection of costumes, balloons, and other decorations. Unfortunately, the covid-19 has devastated customer behavior, which, in turn, reflected in sales. Party City was one of the worst-affected retailers. The firm did very well towards the end of 2019. Yet, as the pandemic forced people to stay away from gatherings, celebrations were forgotten for a while. This has fundamentally paved the way for a series of events that ultimately led to the declaration of bankruptcy and the closure of stores.
Besides, the shortage of helium has been extreme recently. The deficit also proved costly for the firm, as Balloons are its signature item.
Party City had voluntarily filed for Chapter 11 bankruptcy protection in January. The court records claimed that the business bargained with bondholders to secure a $150 million debtor-in-possession loan.