Party City Files for Bankruptcy With Plans to Cut Debt

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Party City Files for Bankruptcy With Plans to Cut Debt
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Party City has filed for bankruptcy amid widening losses and recent sales weakness

Party City Holdco Inc. and some of its U.S. units have filed for chapter 11 bankruptcy as part of the party-favor retailer’s plan to pare its debt load.

The Woodcliff Lake, N.J., company said it has struck an agreement with a group holding more than 70% of its senior secured first lien notes to support an expedited restructuring that would reduce its debt and optimize its capital structure and liquidity.

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