Party City is set to go out of business on Friday as it winds down over two months of going-out-of-business sales.
Although the company is preparing to close the doors of its remaining locations this week, the battle over Party City's assets continues. Two low-cost retailers that often sell party favors, Five Below and Dollar Tree, are planning to purchase some of Party City's unexpired leases.
Dollar Tree has filed a motion to take control of 148 Party City locations. It's currently unclear how many locations Five Below intends to take over, and when those stores would reopen is also unknown.
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In December, the chain of 700 party-goods stores announced it had filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. The company cited "an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors."
"It has been a true pleasure to be a part of your most special moments over the years, and in the coming weeks, we hope you stop by to say goodbye and pick up your favorite items, whether you’re organizing a big celebration now or planning ahead for milestone moments to come," Party City said in a letter to customers.
A hearing regarding the sale of the 148 Party City locations to Dollar Tree is scheduled for Friday.
