Party City has entered a stalking horse agreement to sell all of its IP and related wholesale operating intangible assets to New Amscan.
New Amscan is an affiliate of Ad Populum and the agreement is part of Party City’s Chapter 11 process.
ABL Advisor has reported that the sale agreement is subject to higher or otherwise better offers and Bankruptcy Court approval by the bid deadline of 4 February 2025, with an auction date of 6 February 2025.
Dan Lamadrid, chief financial officer, Party City, commented: “We are pleased that this transaction offers a promising future for the Party City brand as we work to maximise value for the benefit of our stakeholders.”
Joel Weinshanker, ceo, Ad Populum, said: “We are excited to lead the transformation of the Party City and Amscan brands. By combining our strengths in sourcing and distribution with Party City’s legacy, we are confident in our ability to innovate and grow in the party supply market, delivering products that inspire and elevate life’s celebrations.”
David Peress, executive vice president of Hilco Streamback, said: “The sale agreement helps to ensure the preservation of the Party City and Amscan brands for the benefit of vendors and customers and establishes a strong solid baseline for the ongoing intellectual property sales process.”
Robert Himmel, senior managing director at Gordon Brothers, added: “Through this transaction, Ad Populum will be well positioned to reimagine the Amscan wholesale distribution platform, creating a pathway for long-term success in a vital market segment int he party supply industry.”
Paul, Weiss, Rifkind, Wharton & Garrison and Porter Hedges LLP are serving as legal counsel, AlixPartners is serving as restructuring advisor, Hilco Streambank and Gordon Brothers Brands are collectively serving as intellectual property advisor, A&G Real Estate Partners is serving as real estate advisor, and Gordon Brothers is serving as store closing consultant to the Company.
DLA Piper is serving as legal advisor to Ad Populum.
*Details understood as correct at the time of publication. The publisher reserves the right to amend in the event of information/circumstantial changes.
