Party City Holdco Inc. and its affiliates received approval from the U.S. Bankruptcy Court for the Southern District of Texas to proceed with store closing sales at approximately 300 locations across the United States. The court order, issued on January 21, 2025, in Case No. 24-90621 (ARP), authorizes the company to implement store closing procedures in partnership with Gordon Brothers Retail Partners, LLC as the liquidation consultant.
The comprehensive final order outlines detailed procedures for conducting the store closing sales, including guidelines for advertising, store operations, and the handling of merchandise and store fixtures. The order also addresses employee retention through store closing bonuses for non-insider personnel who remain throughout the closing process.
Notable provisions include modifications to customer return policies, with all sales becoming final as of December 23, 2024, except for items with latent defects. The order also establishes protocols for the disposition of store fixtures and equipment after the sales conclude.
The approved procedures include protections for both landlords and the debtors, with mechanisms for resolving potential disputes and ensuring compliance with local regulations. The order specifically addresses the handling of personally identifiable customer information and hazardous materials during the store closure process.
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Link to full document: Final Order (I) Authorizing the Debtors to Assume the Consulting Agreement, (II) Approving Procedures for Store Closing Sales, and (III) Granting Related Relief
Document length: 47 pages