(Reuters) – Party City Holdco Inc is planning a second bankruptcy filing nearly two years after it filed for one in the U.S. as it runs out of cash to run operations, Bloomberg News reported on Tuesday.
Woodcliff Lake, New Jersey-based Party City is behind on rent at some locations, the report said, citing people familiar with the matter.
Party City didn’t immediately respond to a Reuters request for comment.
The company first filed for Chapter 11 bankruptcy protection in the U.S. in January last year, with $150 million in debtor-in-possession financing to support its operations and reported $1 billion to $10 billion of estimated assets and liabilities.
In September, the retailer reached a plan to exit bankruptcy, which saw a cancellation of about $1 billion in company debt and turned all its equity value over to the retailer’s lenders.
Troubled retailers often seek bankruptcy protection following the holiday season to take advantage of the cash cushion provided by recent sales.
(Reporting by Kanjyik Ghosh; Editing by Alan Barona)
Comments