Party City Holdco Inc. on Wednesday received court approval to exit bankruptcy and emerge with a leaner balance sheet, avoiding the fate of retail peers who stumbled in chapter 11 and ceased operations, Bloomberg News reported. The New Jersey-based retailer is set to hand ownership of the company to lenders and reduce its debt load by some $1 billion, according to court papers. U.S. Bankruptcy Judge David R. Jones on Wednesday said he would approve the company’s restructuring plan. “This plan sets the company up for success going forward,” Ken Ziman, an attorney for the company, said during the hearing. “And most important, your honor, this is a plan that preserves thousands of jobs.” Other major retailers have not been so fortunate. Bed Bath & Beyond Inc. liquidated after failing to find a way to keep operating after chapter 11. The story is similar for home goods retailer Christmas Tree Shops LLC, while Jenny Craig Inc. opted to go straight into a liquidation after failing to find a rescuer. As part of the chapter 11 process, the company shuttered more than 60 stores across the country, but was able to keep the vast majority of its more than 700 stores open, according to court papers. “It wasn’t a wholesale exiting of lease locations,” said Ziman.
