Party City Preparing to File Bankruptcy as Soon as This Month

Party City Holdco Inc. is planning to file for bankruptcy possibly within the next two weeks, in a process that may lead to the liquidation of its stores, according to people with knowledge of the matter.

The timing of a filing is still in flux and plans could change, the people said, who asked not to be identified discussing a private matter.

The New Jersey-based seller of balloons and party supplies is running low on cash and unable to pay rent in some locations, Bloomberg previously reported. It would be the second time in less than two years that Party ...