Reported about 21 hours ago
Party City is set to close due to a sudden and disputed drop in inventory value that led lenders to demand a $50 million reserve, straining the retailer's finances amidst declining sales. The company attempted to lift its cash position by hiring valuation services for reappraisal, but failed to secure additional investments. With available cash falling below the reserve amount, Party City has halted inventory orders and is preparing for a Chapter 11 bankruptcy filing, with store closing sales planned before the holiday season.
Source: YAHOO