Party City is not over, despite bankruptcy filing: OKC-area stores party on
Party on, Party City.
Party City, which designs, makes and retails party supplies, filed for voluntary Chapter 11 bankruptcy protection last week, but its 800-plus Party City stores, including seven in the Oklahoma City area, won't immediately be affected as it reorganizes.
Publicly traded Party City, based in Woodcliff Lake, New Jersey, also operates seasonal Halloween City pop-up stores. The company, which trades on the New York Stock Exchange — ticker symbol PRTY — dates to 1947 in the New York City suburbs, according to Retaildive.com, which covers retail real estate nationally.
COVID-19, among other things, hurt Party City's business.
"It began in a family garage. Over the next 75 years, Party City grew through acquisitions of other companies," Retaildive reported. "Party City reached $2.35 billion in revenue in 2019. But the pandemic hit the company hard as most people canceled in-person celebrations, events and gatherings during the early months of the COVID-19 global health crisis."
Party City has stores in Oklahoma City at 13840 N Pennsylvania Ave., 5615 S Pennsylvania, 6920 Northwest Expressway and 6413 SW 3. There is also a store at 526 S Bryant Ave. in Edmond, one at 5824 SE 15 in Midwest City, and one at 552 Ed Noble Parkway in Norman.
An employee at the Edmond location said people at local stores would have no comment.
Party City probably will be able to "shed some debt and stay in business," said Jim Parrack, retail specialist and senior vice president at Price Edwards & Co., an Oklahoma City real estate brokerage that tracks store space and other commercial property.
"They are an interesting case in that you can’t just point to one issue that led them to bankruptcy," Parrack said. "It was loss of sales during the pandemic, supply chain issues, helium shortages, changing consumer spending habits, increased competition, and just plain too much debt.
"Too much debt is almost always what gets retailers when they start having operational issues," Parrack said. "And Party City won’t be the only retailer that struggles this year given the economic environment and pending recession, although I’m sure that doesn’t make them feel any better."
Senior Business Writer Richard Mize has covered housing, construction, commercial real estate and related topics for the newspaper and Oklahoman.com since 1999. Contact him at rmize@oklahoman.com. Sign up for his weekly newsletter, Real Estate with Richard Mize.
This article originally appeared on Oklahoman: Party City stores in OKC area remain open after bankruptcy filing
