A Party City in Clifton, NJ, on Jan 16, 2023.
CNBC | Mike Calia
Retailer Party City has filed for Chapter 11 bankruptcy protection, toppled by a heavy debt load as inflation hits consumers’ wallets and dents sales.
The company said Wednesday it struck an agreement to reduce its debt and has already received support from a group holding more than 70% of its first lien debt to move forward with its bankruptcy plan, according to court papers and a filing with the U.S. Securities and Exchange Commission.
Party City has secured a $150 million bankruptcy loan and will seek approval from the U.S. Bankruptcy Court in the Southern District of Texas on Wednesday to use half of those funds to immediately pay wages and vendors, among other…
Read the full article at: https://www.cnbc.com/2023/01/18/party-city-files-for-bankruptcy-to-restructure-piling-debt.html