Party City plans bankruptcy filing within weeks : report

Celebration Metropolis is making ready to file for chapter inside weeks as its money dwindled and inflation dampened gross sales, the Wall Road Journal reported on Friday, citing folks acquainted with the matter.

Shares of the corporate fell about 58% to fifteen cents in afternoon commerce.

The social gathering provides retailer, which has a market capitalization of about $41 million, has been fighting weaker gross sales as persistently high inflation has impacted the demand for its merchandise.

The corporate is in discussions with its bondholders to transform debt into fairness to trim the steadiness sheet, the report stated.

The report additional added that Celebration Metropolis has engaged AlixPartners LLP as a restructuring adviser.

Celebration Metropolis and AlixPartners didn’t instantly reply to Reuters requests for remark.

Individually, Mattress Tub & Past was additionally preparing to seek bankruptcy protection within the coming weeks, folks acquainted with the matter instructed Reuters on Thursday, following poor gross sales and an lack of ability to compete with massive on-line and big-box retailers.