Party city can soon turn into a dollar tree – where the beloved series is forced to close 800 sites due to bankruptcy.
Dollaar Tree is the largest bidder for the concert city, as it caused nearly 150 locations across the country.
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The December Parties Supply Series announced that it will finish work and “immediately” and close all sites.
now, Dollar treeThat also has a family dollar in the discount chain, has aggressive plans to expand, and this is a step towards it.
Last year, the company also bought 170 contracts of rent from the series of its colleagues in the dollar store only 99 cents, which went bankrupt.
All stores will be closed permanently by February 28, according to CNN.
but Dollar tree It is not the only brand competing for the remains of the party.
Five below, which largely sells products of less than $ 5, was the winning bidder for more than 40 rents.
Other brands include some empty stores, Barak & Books-A-Million, Burlington Coat Factory, Rack Room Shoes, Furniture La-Z-Boy, and Western Wear Cavener's.
Party City has previously presented bankruptcy, but she still finds itself struggling with low sales and other financial issues.
A hearing to agree to transformation Rental contracts will take place as a result of the auction very soon, which will confirm other brands that will take over the remaining hundreds of parties to the city of the city.
It is scheduled to take place at the end of the month in the Houston Court.
More details are expected to appear after the session.
Party problems
The city's city was initially submitted to bankruptcy in September 2023.
The US Sun reported the problems of the city city at the time, and the brand announced on December 22, 2024 that it began to “drop” all its operations.
Then a press release stated: “The decision was taken after the comprehensive efforts by the company to find a path forward that would allow continuous operations in a very difficult environment driven by inflationary pressure on costs and consumer spending, among other factors
He also claimed that “the opposite winds of the macroeconomic … have proven very severe for the company to overcome it.”
In addition to having to treat inflation, the Party City customer base was immersed with competitors like Amazon, Walmart and Target.
“This is undoubtedly, the most difficult message I had to present at all,” said Party City Barry Litwin.
“It is really important to know that we did everything we can try to avoid this result.
“Unfortunately, it is necessary to start a decline immediately.”
How does bankruptcy work?
Banking is a specific legal process that helps companies cancel debts that they cannot pay.
The process allows companies to start new and reach new credit.
The bankruptcy, which is supervised by federal courts, allows the company to sell its assets more easily to pay creditors, according to Investopedia.
Chapter 11, which is a common process for companies, is used to restructure a company with the aim of survival – even if it means selling most of the company's real estate.
Chapter 7, on the other hand, sells all the assets of the company and removes it from work.
Chapter 15, instead, is allowed to cooperate between American and foreign courts to conduct bankruptcy procedures with “parties to an interest that includes more than one country,” according to the United States courts.
Litoin had only held this position for four months before the collapse of the city's city.
He added that “the best efforts made in the city city were not sufficient to overcome” its financial challenges.
During the party city Bankruptcy The period in September 2023, nearly one billion dollars were removed from the debt, but at that time, a job He was carrying about that.
Then the company was presented again in December 2024.
A total of 12,000 employees will be affected by this step, after nearly 40 years of operation.
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