Court documents or official announcements

Party City to Auction Leases of 695 U.S. Stores in Early February Following Second Bankruptcy

Jan 7, 2025, 03:58 AM

Party City, a nearly 40-year-old retailer, is set to auction off the leases of all 695 of its U.S. stores as it begins to wind down operations and hold going-out-of-business sales. The auction, managed by A&G Real Estate Partners, is expected to take place in early February, pending court approval. Party City's decision to liquidate follows its second bankruptcy filing in less than two years, driven by high inflation and weak consumer spending. The company's stores, ranging in size from 7,000 to 46,000 square feet, are located across various states and are considered attractive for potential users such as gyms, entertainment tenants, dollar stores, and medical clinics. Party City's closure adds to a spike in retail bankruptcies in 2024, which saw a total of 51 major filings, influenced by macroeconomic factors like inflation and competition from value-driven retailers and online platforms.