Party City's parent company, Party City Holdco Inc. announced Wednesday that it has filed for Chapter 11 bankruptcy protection.
The company said the restructuring will allow it to reduce debt and optimize its "capital structure and liquidity."
Brad Weston, CEO of Party City Holdco Inc., noted that the company faced headwinds from the pandemic and the global supply chain crisis before filing for bankruptcy.
"Today's action to strengthen PCHI's balance sheet will bolster our ability to further advance our strategic priorities and continue to innovate and elevate the customer experience," he said.
Party City operates more than 800 stores. It's unclear how the bankruptcy proceedings will impact those stores or employees. The company says its first-day motions include requests to continue paying employees and providing benefits.
Party City claims customers can expect the same product selection and service as it goes through bankruptcy, which it expects to be completed in the second quarter of 2023.