Party City Restarts Creditor Talks as Cash Pile Dwindles (1)

Party City Holdco Inc. is renewing talks with creditors over liquidity needs with help from longstanding advisers, according to people with knowledge of the situation.

The retailer has been getting advice from Moelis & Company and law firm Paul Weiss Rifkind Wharton & Garrison, said the people, who asked not to be identified because the matter is private.

Known for selling balloons and other festive supplies, Party City has been squeezed by a helium shortage, costly shipping and consumers wary of rising prices. Sales during the critical Halloween period disappointed investors.

Party City had $121.5 million of liquidity ...