#United States #Woodcliff Lake #Party City #Amscan #Ad Populum

Party City to Transition Ownership Amid Chapter 11

Party City Holdco Inc. (PCHI), a recognized name in the party supply industry, has recently taken significant steps to ensure the continuity of its operations by entering into a stalking horse agreement. This move marks a crucial phase in the company’s Chapter 11 bankruptcy proceedings and entails the sale of its intellectual property and associated wholesale assets to New Amscan PC, LLC, an affiliate of Ad Populum, LLC. The agreement not only aims to preserve the legacy of Party City but also to foster growth in a competitive market valued in the billions.

Key Details of the Agreement

The arrangement is still subject to validation by the Bankruptcy Court and broader interests with a deadline for competing bids set for February 4, 2025, followed by an auction scheduled for February 6, 2025. This decisive action illustrates PCHI’s commitment to preserving the Party City brand, which has served customers for over four decades with an extensive range of products that include decorations, costumes, and balloons.

Ad Populum is no stranger to the retail environment, excelling in pop culture merchandise and the costume industry. They are recognized for their high-quality products inspired by iconic entertainment franchises. The leadership from both companies remains optimistic about combining resources to enhance the legacy of Party City and its wholesale counterpart, Amscan.

Dan Lamadrid, PCHI's Chief Financial Officer, expressed satisfaction with the agreement, viewing it as a promising opportunity for the brand to maximize returns for all stakeholders involved. Meanwhile, Joel Weinshanker, the CEO of Ad Populum, highlighted their excitement about leading the transformation, emphasizing their confidence in innovating the party supply market while upholding the celebrated traditions of Party City.

The Legacy of Party City

Known for its wide assortment of party goods, Party City is synonymous with celebrations across North America, marking birthdays, holidays, and various milestones. The company’s wholesale arm, Amscan, has played a pivotal role as a supplier to many retailers globally, solidifying Party City’s status in the industry.

David Peress, Executive Vice President of Hilco Streambank, noted the significance of this sale not just for Party City and Amscan but for their customers and vendors alike, establishing a foundation that supports future growth and innovation in the sector. Robert Himmel from Gordon Brothers added that this transition places Ad Populum in a favorable position to reshape the Amscan wholesale distribution, paving the way for ongoing success within this essential market segment.

The transition process will involve a detailed auction overseen by Hilco Streambank and Gordon Brothers, with an invitation to interested parties to partake in the bidding process to secure the rights to these valuable assets.

Industry Impact and Future Prospects

The culmination of this sale is anticipated to have a significant impact not only on the employees and stakeholders within these companies but also on the broader party supply industry, where Party City's influence can be felt widely across various platforms. Given the competitive landscape and the persistent evolution of consumer preferences, the new leadership teams are eager to revitalize the brand, enhance its product offerings, and solidify its market position.

Conclusion

As Party City embarks on this transformative journey, the commitment to innovation and the preservation of its brand legacy stands paramount. With robust backing from Ad Populum and effective restructuring strategies in place, the company's ability to navigate through these challenges while remaining a leader in the celebrations market looks promising. Party City’s future hinges on this initiative, paving the way for the next chapter in a rich history of celebrating life’s moments.

For additional information, parties interested in the auction process can reach out to auction overseers as detailed in the initial announcements. PCHI continues to assure all stakeholders of its dedication to finding a prosperous resolution through this period of transition.