Woodcliff Lake-based Party City Holdco Inc. on Friday said it completed its restructuring process and emerged from Chapter 11 bankruptcy protection financially stronger and well-positioned for the future.
The party goods retailer said it eliminated nearly $1 billion in debt, enhanced its liquidity and optimized its Party City store portfolio by having negotiated improved lease terms and exited less-productive stores.
The company will move forward with nearly 800 Party City locations nationwide.
“We are thrilled to celebrate the successful conclusion of our restructuring and the bright future that lies ahead for PCHI,” said Brad Weston, CEO of 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 the completed restructuring, Weston intends to step down Nov. 3. Sean Thompson, currently president and chief commercial officer, will transition to interim CEO.
Additionally, Norman Matthews, Joel Alsfine, Steven Collins, James Conroy, William Creekmuir, Sarah Dodds-Brown, Jennifer Fleiss, John Frascotti and Michelle Millstone-Shroff resigned from the board. The remaining board members include Neal Goldman, Robert Hull, Mark King, Anthony Truesdale and Weston.
“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,” Weston said.
Under the company’s restructuring plan, approved by the U.S. Bankruptcy Court for the Southern District of Texas in September, PCHI has emerged with a new exit asset-based revolving credit facility of $562 million and a $75 million new money investment to fund go-forward operations and distributions under the plan.