The Spanish party retailer says it was not able to meet the financial obligations assumed during the period of restrictions in the Covid era.
Party Fiesta has told suppliers it is now pursuing three main objectives: To protect the interest of suppliers and creditors; to start a new stage with a new investor; and to continue to develop its activity with full normality and to protect all of its staff.
From 2015 to 2018, Party Fiesta underwent a process of international expansion into Portugal, France, Germany and Austria, reaching over 125 outlets between its own stores and franchises, financed largely by bank financing.
To manage the Covid situation, Party Fiesta required additional funding and was forced to focus on the original market, maintaining stores in Spain and Portugal. The restrictions on social and festive events until 2022 delayed the recovery of the business and forced a new financing, which the company says has led it to its current situation.
Over the last year, Party Fiesta has focused on its origins in Spain where the brand recognition is higher. This strategy has led to investors showing an interest in the business.
In the coming weeks, the company’s intention is to advance the bankruptcy process and facilitate the entry of the investor who acquires the business so that it can regain the confidence of suppliers and creditors.
In communications to suppliers, Party Fiesta said: “We hope to be able to leave this process behind as soon as possible, shape our future project together with the new Party Fiesta investors and restore our business relationship based on trust.”
The company and its bankruptcy administrators will contact suppliers to send them more information over the coming days. Party Fiesta concluded: “We reiterate our sincere thanks for your support and we hope to continue our relationship in the new stage that we will premiere.”
