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New Chapter for Party City

    In a significant development, specialty retailer Party City has secured a buyer for its intellectual property and key assets. New Amscan PC LLC, an affiliate of Ad Populum, emerged as the winning bidder in a February 6 auction, securing most of Party City's brand identity and real estate lease portfolio.

    The sale, valued at $20 million, is a substantial increase from the initial stalking horse bid. The buyer plans to leverage its strengths in sourcing and distribution to revitalize the Party City brand, which has been struggling with debt and declining sales. As part of the deal, New Amscan will acquire a significant portion of Party City's real estate lease portfolio.

    Party City filed for Chapter 11 bankruptcy protection in December 2024, citing liabilities of $1 billion to $10 billion and assets of between $1 billion to $10 billion. The retailer has been working to restructure its debt and reduce its footprint since exiting bankruptcy in September 2023. Despite efforts to revitalize the brand, Party City's financial struggles continued, leading to a second bankruptcy filing.

    The sale is subject to approval by the U.S. Bankruptcy Court for the Southern District of Texas and is expected to be finalized on February 26. Closing sales are currently underway at stores nationwide, with liquidation proceedings set to continue through the end of the month.