PCHI Completes Successful Auctions of Party City® Brand and Related Amscan® Operating Assets as well as Significant Portion of Real Estate Lease Portfolio
Ad Populum Affiliate Named Winning Bidder for Intellectual Property
WOODCLIFF LAKE, N.J., Feb. 7, 2025 /PRNewswire/ -- Party City Holdco Inc. ("PCHI" or the "Company") announced today that it successfully completed auctions of substantially all of its intellectual property and related wholesale operating intangible assets as well as a significant portion of its real estate lease portfolio. Together, these efforts to maximize value will generate substantial proceeds for the benefit of stakeholders in the Company's Chapter 11 proceedings.
Following robust bidding, New Amscan PC, LLC, an affiliate of Ad Populum, LLC, emerged as the winning bidder for the Party City brand and related Amscan operating assets. New Amscan's prevailing bid, which has a net value of $20 million comprised of $16 million in cash and additional consideration, represents twice the value of its "stalking horse" bid heading into the auction. As previously announced, Ad Populum intends to lead a transformation of the Party City and Amscan brands, leveraging its strengths in sourcing and distribution to preserve and build upon PCHI's legacy in the multibillion dollar party supply industry.
The Company's lease auction process resulted in approximately $14.5 million of gross proceeds, with the potential for additional value to be generated. Efforts to monetize remaining leases are continuing, and interested parties are encouraged to visit https://www.agrep.com/index.php/partycity for more information on available sites.
A hearing has been scheduled for February 26, 2025 to receive court approval of these sales.
Advisors
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP are serving as legal counsel, AlixPartners LLP is serving as restructuring advisor, Hilco Streambank and Gordon Brothers Brands are collectively serving as intellectual property advisor, A&G Real Estate Partners is serving as real estate advisor, and Gordon Brothers is serving as store closing consultant to the Company.
DLA Piper is serving as legal advisor to Ad Populum.
About Party City
Party City is a leading party goods company in North America and is a popular one-stop shopping destination for party supplies, balloons, and costumes. In addition to being an iconic retail brand, Party City is a global organization that combines manufacturing and sourcing operations and wholesale operations with a multi-channel retailing strategy and e-commerce retail operations. Party City designs, manufactures, sources, and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts, and stationery throughout the world. Founded in 1986, Party City has become synonymous with celebrations, helping millions of people create unforgettable memories.
About Ad Populum
Ad Populum aligns corporate strategy and fosters growth across its unique roster of consumer products and entertainment brands by leveraging its strong global retail distribution, product development, and manufacturing capabilities. Across its roster of brands, including NECA, Kidrobot, Wizkids, Chia Pet, Rubies, Smiffys, Enesco, Graceland, and more, Ad Populum is the largest producer of pop culture goods and experiences, targeting everyone from Boomers to Gen Z.
Media Contact
Kekst CNC
PCHIMediaInquiries@kekstcnc.com
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