Party City Holdco Inc., a purveyor of party favors, has engaged attorneys to help it evaluate options to address a liquidity crunch while its bondholders have tapped restructuring professionals as well, the Wall Street Journal reported. Party City has been suffering from widening net losses, and its recent Halloween sales came in at the low end of expectations in part because inflationary pressures have hampered customers’ willingness to spend, the company said last month. Party City has engaged law firm Paul Weiss Rifkind Wharton & Garrison LLP as restructuring counsel. Meanwhile, investors with interests in Party City’s bonds have engaged the law firm Davis Polk & Wardwell LLP as well as financial adviser Lazard Ltd. In addition to the macroeconomic headwinds the company has faced, Party City is also contending with constraints in the market for helium, a key gas it uses to blow up balloons. The company has said it is working to diversify its sources of helium to alleviate the supply limitations and price increases in the helium market, which have pressured both its retail and wholesale business segments.
