Dive Brief:
- After filing for Chapter 11 bankruptcy protection at the start of the year, Party City Holdco has completed its restructuring efforts and emerged from bankruptcy, according to a company announcement.
- The restructuring has eliminated nearly $1 billion in debt. The company also negotiated lease terms and closed underperforming stores, and now has nearly 800 Party City locations nationwide.
- Party City Holdco CEO Brad Weston will step down from his role, effective Nov. 3. Current President and Chief Commercial Officer Sean Thompson will become the company’s interim CEO.
Dive Insight:
Party City Holdco has emerged from its bankruptcy on stronger financial footing, according to Weston.
"We are thrilled to celebrate the successful conclusion of our restructuring and the bright future that lies ahead for PCHI," Weston said in a statement. “Our team looks forward to continuing to deliver on our promise of making joy easy and to advancing PCHI's extraordinary legacy as the go-to destination for all things celebration."
The company’s restructuring plan was approved by the U.S. Bankruptcy Court for the Southern District of Texas at the start of September. PCHI has an ABL facility of $562 million and a $75 million investment to support go-forward operations.
Party City reached over $2 billion in revenue in 2019. But the pandemic heavily impacted the company as people canceled in-person events and celebrations. That, along with an ongoing shortage of helium to support one of its core products of balloons, led to sales and profit hits.
Weston, who led the company through its restructuring, will be passing the helm to interim CEO Thompson, who has been with Party City for four years. Thompson worked at 7-Eleven for over seven years, most recently as the senior vice president of merchandising. Prior to that, Thompson was a senior buyer for Target in its pharmacy division, according to LinkedIn.
PCHI operates company-owned stores, franchise locations and Halloween City seasonal pop-up stores, as well as a consumer products division.
