Nearly 700 Party City stores were auctioned off along with substantially all of their intellectual property, assets and a significant amount of the real estate lease portfolio.
New Jersey is home to 26 Party City locations that were part of the auction which generated proceeds that will benefit stakeholders in the Woodcliff Lake-based company’s Chapter 11 proceedings.
According to a release from New Amscan PC LLC, an affiliate of Ad Populum LLC, which emerged as the winning bidder for the Party City brand and related Amscan operating assets, the company’s lease auction process resulted in approximately $14.5 million of gross proceeds, with the potential for additional value to be generated.
A hearing has been scheduled for Feb. 26, 2025, to receive court approval of these sales.
A&G Real Estate Partners, which is a real estate advisor to Party City Holdco Inc. (PCHI), auctioned off 695 Party City store leases.
Ad Populum said in a press release that it intends on leading a transformation of the Party City and Amscan brands, leveraging its strengths in sourcing and distribution to preserve and build upon PCHI’s legacy in the multibillion-dollar party supply industry.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP are serving as legal counsel, AlixPartners LLP 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.
