Party City Plans Second Bankruptcy Filing

(Reuters) – Party City Holdco Inc (OTC:PRTYQ) is planning a second bankruptcy filing nearly two years after its initial filing as cash runs low, according to Bloomberg News.

Based in Woodcliff Lake, New Jersey, Party City is reportedly behind on rent at some locations, as stated by sources familiar with the matter.

The company has not yet responded to a request for comment from Reuters.

Party City first filed for Chapter 11 bankruptcy protection in January last year, securing $150 million in debtor-in-possession financing to sustain its operations. At the time, the company estimated its assets and liabilities to be between $1 billion and $10 billion.

In September, the retailer finalized a plan to exit bankruptcy, which involved canceling approximately $1 billion in company debt and transferring all equity value to the retailer's lenders.

Retailers often pursue bankruptcy protection after the holiday season to capitalize on the cash influx from recent sales.