(Bloomberg) — Party City Holdco Inc. has sought funding for a potential Chapter 11 bankruptcy, according to people with knowledge of the preparations.
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The company, which is preparing to enter bankruptcy protection within weeks, is sharing information with potential providers of debtor-in-possession financing, said the people, who asked not to be identified because the matter is private.
Rockaway, New Jersey-based Party City has been negotiating with a creditor group that includes Capital Group Cos Inc. and Silver Point Capital ahead of the potential filing, Bloomberg reported.
Known for selling balloons and other festive supplies, Party City has been squeezed by a higher costs of goods and shipping as well as a helium shortage. Sales during the critical Halloween period disappointed investors.
The retailer has been getting advice from Moelis & Co. and law firm Paul Weiss Rifkind Wharton & Garrison.
A representative for Moelis didn’t immediately comment on the bankruptcy financing talks, while representatives for Paul Weiss and Party City didn’t immediately respond.
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Source: https://finance.yahoo.com/news/party-city-holds-talks-potential-193705017.html