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Jul 18, 2023Kekst CNC handling comms for Party City closure | PR Week
Feb 26, 2025News
Party City Holdco declared bankruptcy in Texas court and expects mass layoffs at its New Jersey headquarters.
by Noah Zuss December 27, 2024
WOODCLIFF LAKE, N.J.: Global communications consultant Kekst CNC is handling bankruptcy communications for Party City Holdco as the retailer and certain of its subsidiaries filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas earlier this week.
Party City has entered into an agreement to cease operations by selling off its retail and wholesale operations at nearly 700 stores nationwide. Kekst CNC was listed as a media contact on Party City’s press release about the news on December 21.
The decision to close followed efforts by the company to continue operations, the press release explained. Challenges such as “inflationary pressures on costs and consumer spending,” factored into the decision, the release stated.
The bankruptcy filing also followed the company’s 2023 restructuring, which eliminated nearly $1 billion in debt.
“As with many other retailers, macroeconomic headwinds more recently proved too severe for the company to overcome,” the release stated.
Currently, Party City has stores in more than 70 countries and is North America’s largest party goods retailer, the release noted. The chain recently operated more than 850 stores in the U.S. alone.
At Party City’s New Jersey headquarters mass layoffs are expected, according to reports.
The chain of party stores was founded in 1986 by Steve Mandell in East Hanover, New Jersey. The company's headquarters are in Woodcliff Lake, New Jersey.
Paul, Weiss, Rifkind, Wharton & Garrison and Porter Hedges are serving as legal counsel and AlixPartners is serving as financial advisor to Party City Holdco. The company has retained Gordon Brothers to supervise the going out of business sales under the company's management.
A Kekst CNC spokesperson was not available to comment.
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