| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Pre-Negotiated, Expedited Restructuring Expected to Substantially Reduce Debt and Optimize Liquidity
Party City Stores Open, Serving Customers as the "Go To" One-Stop-Shop for All Things Celebration
$150 Million Financing Commitment to Support Ongoing Operations Across All Divisions
WOODCLIFF LAKE, N.J., Jan. 17, 2023 /PRNewswire/ -- Party City Holdco Inc. (NYSE:PRTY) ("PCHI" or the "Company"), a global leader in the celebrations industry, today announced that it has entered into an agreement with an ad hoc group of holders of more than 70% of the Company's senior secured first lien notes (the "Ad Hoc Group") to support an expedited restructuring that would substantially reduce PCHI's debt and optimize its capital structure and liquidity. This would ensure that PCHI is best equipped to continue to advance its transformational initiatives and enhance its market leadership in all things celebration from a strengthened financial position.
To implement the Company's pre-negotiated restructuring, PCHI and certain of its domestic subsidiaries filed voluntary Chapter 11 petitions for relief in the U.S. Bankruptcy Court for the Southern District of Texas. The Company's subsidiaries outside of the U.S., its Party City franchise stores, and its Anagram business, which is the global market leader in foil balloons, are not part of the Chapter 11 proceedings and will continue as core components of the PCHI enterprise.
"In the face of pandemic headwinds, a global supply chain crisis, and other macroeconomic challenges that have faced our industry, we have made significant strides in PCHI's ongoing transformation – establishing a solid foundation for long-term growth and continued success as the market leader in the celebrations space," said Brad Weston, Chief Executive Officer of PCHI. "Today's action to strengthen PCHI's balance sheet will bolster our ability to further advance our strategic priorities and continue to innovate and elevate the customer experience."
Mr. Weston added, "As we take this important step to put our business on stronger financial footing for the future, we are as committed as ever to inspiring joy by making it easy for our customers to create unforgettable memories. We appreciate the commitment of our team members and the continued support of our partners as we further enhance our position as the 'go to' one-stop-shop for celebrating life's special moments."
The Company continues to welcome shoppers at the more than 800 Party City stores and online at www.partycity.com. Retail and wholesale customers across all of the Company's businesses and brands can expect the same amazing product selection and service. PCHI will continue to advance its key initiatives underway, including the further conversion of Party City stores to next-generation prototypes, evolving its Halloween City pop-up stores to drive performance in this channel, building out a best-in-class online shopping experience, establishing localized marketplaces to revolutionize one-stop-shopping in the celebrations space, and delivering more compelling assortments and innovation for customers.
PCHI has secured a commitment from the Ad Hoc Group for $150 million in debtor-in-possession financing. Subject to Court approval, this "new money" financing will provide ample liquidity to support continued operations during the process across the Company's retail and consumer products divisions while maintaining momentum on its transformation.
The Company is filing with the Court a series of customary motions seeking to maintain business-as-usual operations and uphold its commitments to its valued stakeholders. These "first day" motions, which PCHI expects to be approved in short order, include requests to continue to pay wages and provide benefits to the Company's employees as usual as well as honor customer programs and policies. The Company intends to pay suppliers in the ordinary course for authorized goods received and services provided after the filing.
The restructuring is expected to be completed in the second quarter of 2023.
Posted In: PRTY
