Party City Hit With Franchisees’ Party Goods Price-Fixing Suit

Party City is facing an antitrust suit over claims it forces franchisees to enter anticompetitive agreements that limit them to purchasing goods from a Party City affiliate instead of other suppliers.

Lead plaintiff Dojo Enterprises Inc. alleges that it and other Party City franchisees are required to purchase 80% of the party goods sold in their franchise stores from Amscan, the manufacturing division of Party City Holdings, according to complaint filed Monday in the US District Court for the District of New Jersey.

The suit follows New Jersey-based Party City’s exit from bankruptcy roughly a year ago after it shuttered ...