A bankruptcy court auction of 695 former Party City store leases has garnered $14.5 million of gross proceeds, but there are over 400 sites that are still waiting for a buyer.
The two top bidders are value discounter Dollar Tree, at 148 locations, and extreme value discounter Five Below Inc., at 44 sites. Houston bankruptcy court documents show that Western apparel and cowboy boot retailer Cavender’s acquired 15 doors, while Rack Room Shoes Inc. bought nine locations. Off-pricer Burlington Stores acquired two stores. A hearing for bankruptcy court approval is set for Feb. 26.
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A&G Retail Estate Partners is still marketing the remaining unsold leases.
Party City also sold its intellectual property and certain wholesale assets to New Amscam, an affiliate of Ad Populum, for $20 million, representing twice the value of its “stalking horse” bid.
Party City survived a 2023 bankruptcy filing, but in December began wind-down operations that saw 695 doors go dark.
The Container Store, which filed its pre-packaged bankruptcy petition in late December, successfully emerged from Chapter 11 at the end of last month under the ownership of its lenders. The support of its lenders allowed the storage and organization retailers keep 102 stores in operation and save nearly 4,000 jobs.
Next up is Joann’s, the fabrics and craft retailer that filed its Chapter 11 petition on Jan. 15. It inked a deal with Gordon Brothers Retail Partners as the “stalking horse” bidder. Wednesday is the bid deadline, and if no one steps up to the plate, the auction slated for Friday will be canceled. If there is an auction, the results could be disclosed on Saturday, followed by a court hearing on Feb. 21 for approval of the buyer.