Party City Holdco Inc. has sought funding for a potential chapter 11 bankruptcy, Bloomberg News reported. The company, which is preparing to enter bankruptcy protection within weeks, is sharing information with potential providers of debtor-in-possession financing, said the people, who asked not to be identified because the matter is private. Rockaway, N.J.-based Party City has been negotiating with a creditor group that includes Capital Group Cos Inc. and Silver Point Capital ahead of the potential filing, Bloomberg reported. Known for selling balloons and other festive supplies, Party City has been squeezed by a higher costs of goods and shipping as well as a helium shortage. Sales during the critical Halloween period disappointed investors. The retailer has been getting advice from Moelis & Co. and law firm Paul Weiss Rifkind Wharton & Garrison.
