Party City Holdco Inc (PCHI) has completed its restructuring process and emerged from Chapter 11 financially stronger and well positioned for the future.
Through its restructuring, PCHI has substantially strengthened its capital structure by eliminating almost $1 billion in debt, enhanced by its liquidity, and optimised its store portfolio by having negotiated improved lease terms and exited less productive stores. The company will move forward with 800 locations in the US.
Brad Weston, ceo of PCHI, commented: “We are thrilled to celebrate the successful conclusion of our restructuring and the bright future that lies ahead for PCHI. We have exited the process on stronger financial footing, and I am incredibly appreciative of the tremendous efforts made by our team to get us to where we are today.
“We also thank our retail and wholesale customers, suppliers, and landlords for their support, which was instrumental in achieving today’s positive outcome. Our team looks forward to continuing to deliver on our promise of making joy easy and to advancing PCHI’s extraordinary legacy as the go-to destination for all things celebration.”
In connection with today’s emergence, Brad Weston announced his intention to step down as ceo, effective 3 November, 2023, and transition leadership responsibility to Sean Thompson, currently the president and cco, as interim ceo.
Brad added: “Based on all that has been accomplished over the last several years – strategically, operationally, and financially – PCHI has emerged with an excellent foundation in place to drive long-term growth. At this juncture, with the restructuring now behind us, the timing is right to pass the baton to Sean, who I’m confident will build on the significant strides that have been made as PCHI continues to expand its market leadership and enhance the customer experience.”
Under the Company’s Plan of Reorganisation, which was approved by the US Bankruptcy Court for the Southern District of Texas on 6 September, 2023, PCHI has emerged with a new exit ABL facility of $562 million and a $75 million new money investment to fund go-forward operations and distributions under the Plan.
The Company’s new shareholders include the members of the ad hoc group of holders (the “Ad Hoc Group”) of the Company’s prepetition senior secured first lien notes who supported the restructuring.
