CNN —Party City exited bankruptcy on Wednesday after a US judge signed off on the retailer’s reorganization plans.
The plan cancels nearly $1 billion of Party City’s debt, and while some of Party City’s nearly 800 US stores will close due to the bankruptcy agreement, the majority will stay open, according to the company.
In a statement, Party City said it had renegotiated many of its leases and exited “less productive locations.” That means many of Party City’s workers will stay employed.
However, those who held Party City’s stock did not fare as well in the bankruptcy agreement.
An August filing by Party City’s financial adviser, Moelis & Co., estimated that the retailer is currently worth between $450 million and $775 million.
Persons:
Brad Weston
Organizations:
CNN — Party City, City’s, Party, Party City
Locations:
Party City