Party City's Bankruptcy Plan Approved, Shareholders Face Grim Outcome

Party City, the party goods and Halloween supply retailer, has received approval for its Chapter 11 restructuring plan, allowing it to reduce its debt by $1 billion. However, shareholders will bear the brunt of the restructuring as their shares will be wiped out. The company's lenders will convert the debt into equity shares. Despite the setback for shareholders, Party City expects to emerge as a stronger business and will only need to close a few of its 800 stores, preserving thousands of jobs. The bankruptcy filing was prompted by supply chain issues, rising inflation, and a consumer slowdown.