America's Largest Party Supplies Store Files for Bankruptcy

This Tuesday, the 17th, the company that, until then, was the largest party supplies store of the United States, Party City, has filed for bankruptcy. The reasons that made the company give up were the increasing competition and several years of financial loss. The store also specialized in items for Halloween, one of the biggest festive events for the American people.

The retail chain said in a regulatory filing that it reached an agreement with creditors, seeking to cut debt worth $1.7 billion. In addition, the company said it has set aside $150 million in funding, which will allow the stores to remain open and operations to continue.

In the month of October, the franchise had 761 stores, with 149 temporary stores focused on Halloween alone. As of 2021, Party City employs over 16,000 employees, spread across all of its facilities.

However, over the years, competition in this trade sector has started to increase, and now there are several stores of this type, in addition to online commerce, where it is possible to find practically anything, at any time of the year. year.

However, competition wasn't the only factor that drove Party City to bankruptcy. During the pandemic, the company has had to deal with rising costs, as well as a low supply of helium gas, which, for stores that sell balloons, is practically essential. According to the company's document, the balloons were a focus of the company's growth strategy, as well as a key point that set the store apart from other competitors.

The company has been losing money for a few years now, for example, between 2017 and 2021, sales dropped by 8%, reaching $2.2 billion. Between 2019 and 2021, the company also lost a lot of money every year, with the estimate being one prejudice of up to US$199 million for the year 2022.

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