Party City Files Bankruptcy After Pandemic Recovery Falters (2)

Party City Holdco Inc. is seeking bankruptcy protection, a final blow for the retailer that struggled to rebound after sales plummeted during the pandemic.

The firm filed for Chapter 11 bankruptcy in the Southern District of Texas on Tuesday, court documents show. It reached a plan with holders of more than 70% of its first-lien secured notes that will see it cut debt and shed leases, according to a statement.

Chapter 11 filings allow a company to keep operating while it works out a plan to repay creditors. The creditor group has agreed to provide $150 million to help ...