Party City considering second bankruptcy filing, reports show

New York’s Staten Island — As it runs out of money to run its stores, Party City Holdco Inc. is preparing to file for bankruptcy a second time, according to a report by Bloomberg News. The announcement was made almost two years after the business first filed for Chapter 11.

Party City is late paying rent at some locations, according to a report by Bloomberg that quoted people with knowledge of the situation. A request for information regarding Party City’s financial situation was not immediately answered.

In January 2023, Party City first declared Chapter 11 bankruptcy and arranged for a quick reorganization. Following that, the company shut down dozens of locations, including Party City at The Boulevard Shopping Center in New Dorp.

The store announced more closures two months after reaching an agreement to emerge from bankruptcy in September. Among those cuts was the Party City in Port Richmond, which is currently covered in signs indicating closure and liquidation.

New Springville’s Richmond Avenue is home to the only remaining Staten Island Party City. In the past, the chain ran 823 retail locations.

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