1756 Route 46 in Woodland Park
By Joshua Burd
A store in Passaic County is among nearly two dozen Party City locations slated for closure or auction as part of the beleaguered chain’s bankruptcy restructuring.
As reported by multiple outlets last week, the Woodcliff Lake-based retailer is shuttering 10 spaces and plans to auction another 12 as part of an expedited financial restructuring. Those slated for closure include the store in Woodland Park, at 1756 Route 46, where it’s among the larger tenants.
Party City Holdco Inc., which filed for bankruptcy protection last month, is also closing stores in New York, Texas, Georgia, West Virginia, Louisiana, Michigan, Iowa and Illinois, according to a court filing. Meantime, it hired A&G Real Estate Partners as an adviser in its plan to auction the leases at another 12 sites in New York, Missouri, Michigan, Oklahoma, Oregon and West Virginia, in the first tranche to become available.
The advisory firm noted that it expects to auction additional locations in the weeks ahead, although the total number of leases being offered depends on the outcome of ongoing negotiations between A&G and Party City landlords. The firm added that it’s also advising on lease portfolio strategy as Party City looks to reduce its debt and optimize its capital structure and liquidity.
“Given the high cost of new construction in today’s marketplace, the lack of new development, and the strong attributes of many of these Party City locations, we expect good interest from local and regional tenants who see this as an opportunity to open in a fully built-out retail box and begin doing business within three months,” said Andy Graiser, co-president of A&G.
The restructuring is expected to be completed in the second quarter of 2023.
“Our work on our lease portfolio is moving very quickly, with a plan for us to exit locations that do not meet the key financial metrics required for our go-forward fleet,” said Marc Ehle, Party City’s executive vice president of enterprise operations.
