Party City successfully completes financial restructuring

Following its restructuring, PCHI has significantly fortified its capital structure by eliminating nearly $1 billion in debt, bolstered its liquidity, and optimized its store portfolio by securing improved lease terms and exiting less productive stores. The company is set to progress with 800 locations across the US.

PCHI's CEO, Brad Weston, expressed enthusiasm about the successful conclusion of the restructuring and the promising future for PCHI. The company emerges from the process with a strengthened financial foundation, attributing the achievement to the remarkable efforts of the team and the invaluable support from retail and wholesale customers, suppliers, and landlords.

In conjunction with this development, Brad Weston announced his decision to step down as CEO, effective November 3, 2023, and pass on leadership responsibilities to Sean Thompson, currently serving as the President and CCO, who will assume the role of interim CEO.

Brad Weston remarked on the significant accomplishments made over the past several years, positioning PCHI for long-term growth strategically, operationally, and financially. With the restructuring completed, he believes it's the right time to hand over the reins to Sean, expressing confidence in his ability to build on the strides made and further expand PCHI's market leadership while enhancing the customer experience.

Under the Company’s approved Plan of Reorganization, PCHI emerges with a new exit ABL facility of $562 million and a $75 million new money investment to support ongoing operations and distributions. The company's new shareholders include members of the Ad Hoc Group of holders of the Company’s prepetition senior secured first lien notes, who played a crucial role in supporting the restructuring.