Nearly 700 Party City locations are set to auction off their store leases as the chain prepares to close all of its stores. This follows the retailer's financial struggles and multiple bankruptcy filings. Among the locations up for auction are stores in New York and New Jersey, including Manhattan, Staten Island, the Bronx, Brooklyn, Jersey City, and Princeton, according to Gothamist.
Party City, which is closing after nearly four decades, first filed for bankruptcy in January 2023. The company faced a $2 billion deficit and struggled to recover. After briefly emerging from bankruptcy, Party City filed again last month due to macroeconomic headwinds. Despite reducing its debt by $1 million, it announced that all employees will be terminated by the end of February, marking the end of its operations, according to CNN's report obtained by Gothamist.
A&G Real Estate Partners, serving as Party City's real estate advisor, is handling the auction process. Emilio Amendola, Co-President of A&G, said, "This is a large and diverse store portfolio, with good real estate and a great many stores located in high-traffic shopping centers." Store leases in the Albany area, including in Latham and Clifton Park, are also being auctioned, according to a statement obtained by NEWS10.
The auction offers opportunities for businesses looking to expand. Mike Matlat, A&G Senior Managing Director, said, "You’ve got a number of strong candidates for this real estate." The stores vary in size and could be used for different purposes, such as gyms or medical clinics. As the auction, expected next month, approaches, Party City continues its going-out-of-business sales with discounts for customers. During this phase, Party City is keeping over 95% of its 12,000 employees to assist. The lease auction will take place at the Manhattan office of PCHI's legal counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP, according to NEWS10.
