Party City Holdco, a U.S.-based company entirely separate from the Canadian Tire Corp.-owned Party City Canada, has filed for Chapter 11 bankruptcy south of the border. Its approximately 800 stores will remain open, but the company has said they will commence going-out-of-business sales. This is the second Chapter 11 filing for Party City Holdco. Its last one, in early 2023, wiped out US$1 billion of its US1.7 billion debt. This time, it has a reported debt of US$800 million.
A Canadian Tire spokesperson told CBC News on Friday that Canadian operations would continue unabated. “The operations of Party City in Canada are entirely separate from Party City Holdco in the U.S.,” a Canadian Tire spokesperson told CBC News in an email. There are approximately 69 Party City stores in Canada, in eight provinces.
