(Bloomberg) -- Party City Holdco Inc. is planning to file for bankruptcy possibly within the next two weeks, in a process that may lead to the liquidation of its stores, according to people with knowledge of the matter.
The timing of a filing is still in flux and plans could change, the people said, who asked not to be identified discussing a private matter.
The New Jersey-based seller of balloons and party supplies is running low on cash and unable to pay rent in some locations, Bloomberg previously reported. It would be the second time in less than two years that Party City has sought bankruptcy protection, battered by years of lagging sales that made its debt burden unbearable.
Lenders including Silver Point Capital took over ownership of Party City when it exited Chapter 11 protection in October 2023 and reduced its debt by about $1 billion and closed more than 60 stores. But emerging from bankruptcy with more than $800 million of debt still in place has continued to drag down profits and strain Party City’s liquidity.
A representative for Silver Point declined to comment, and a representative for Party City didn’t immediately respond to requests for comment.
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