Party City Holdco. Inc is carrying on with its major restructuring process. The firm has tasked Newmark’s Excess Space Retail Services Inc. with overseeing site selection and lease renewals, while also optimizing the overall retail locations.
Marc Ehle, executive vice president of enterprise operations at PCHI, said in prepared remarks ExcessSpace has previously helped Party City with strategic negotiations with landlords. The firm’s portfolio totals more than 750 locations across 45 states and includes stores that are company-owned or franchised.
Party City’s long-term strategy involves driving more traffic into its stores and strengthening its digital and marketing presence, as well as expanding and upgrading its existing locations. ExcessSpace will focus on the firm’s real estate component of this strategy.
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In February, Party City also announced that it would accelerate the adoption of its new store format following the early success seen with pilot stores. The new model shifts away from a traditional aisle shopping experience and instead adopts a sectional design that has a side for kids birthdays and another side for general birthday celebrations. Earlier this month, the company held a grand reopening for the Cumberland, Ga., location, one of its latest reformatted stores.
Overhauling the Party City strategy
Party City’s appointment for ExcessSpace is the latest step in the company’s rebound after filing Chapter 11 proceedings at the start of 2023. Following its petitions, Party City was able to complete a restructuring process in October.
The move eliminated nearly $1 billion in debt, enhanced the company’s liquidity with a $562 million lending facility and optimized the portfolio by securing better lease terms and exiting less productive stores. The company also secured a $75 million investment that would fund go-forward operations and distributions.
Having gone through Chapter 11, the New Jersey-based Party City is planning to move forward with optimizing its U.S. locations, including the one in Jensen Beach, Fla.
The post Party City Taps Newmark Firm to Optimize Retail Portfolio appeared first on Commercial Property Executive.
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