Party City is Filing for Bankruptcy

Introduction

Party City is filing for Chapter 11 bankruptcy protection Monday. The company's stock price has fallen 50% this year as customers have turned away from helium balloons and toward more sustainable party supplies like pizza boxes and plastic flamingos. Party City's competitors, such as Costco and Amazon, are already selling more eco-friendly products than ever before.

The party store chain filed for Chapter 11 bankruptcy protection on Monday.

Party City filed for bankruptcy on Monday, becoming the latest retailer to seek financial relief as it deals with the fallout from the Toys R Us collapse and a slowing economy.

The party store chain plans to close 45 underperforming stores, according to Reuters. The company also hopes that its filing will help it negotiate with creditors and get them back on board as it tries to turn around its business model by shifting focus away from “party goods” towards seasonal items like Halloween costumes, decorations and other fun stuff.

Party City filed under Chapter 11 bankruptcy protection instead of Chapter 7 liquidation because they plan on keeping operating while restructuring their debt situation. This means that you'll still be able to go into your local Party City store this year and find all sorts of fun stuff if you need something festive or silly for your next event!

The party store chain will be in good company during this difficult time.

You’re not alone. Party City isn't the only party supply company that has filed for bankruptcy in the wake of COVID-19. Other companies have been hit hard, as well:

• Birthday Express— $1 billion in assets, $500 million in debt

• Build-A-Bear Workshop— $21 million in assets and $5 million in debt

• Dollar Tree— $17 billion in assets and about $9 billion owed

The company's stock price has fallen 50% this year.

The company's stock price has fallen 50% this year and the company has lost a lot of money. The stock price will likely fall more, and it probably won't recover in the near future.

Helium shortages are hitting the party supply industry hard

If you’re thinking of hosting a party or celebration, you might want to consider helium balloons. After all, what is a party without them? In fact, party balloons are so important that they were even used to help celebrate the US military victory over ISIS in Syria.

But how are these celebrations still happening if there’s a shortage of helium in the United States? How can we get our balloon fix when all we want is to celebrate with balloons?

Conclusion

As the party supply industry continues to struggle with helium shortages, Party City won't be the only company filing for bankruptcy. The helium crisis has hit a number of businesses hard over the past few years and there's no end in sight. In fact, it may get worse before it gets better. As consumers continue to hold off on buying balloons and decorations due to high prices on helium-filled products, fewer companies are willing or able to afford these costs which means less profit for them all around!