By Mrinmay Dey
(Reuters) – Celebration Metropolis, which has been struggling because the COVID-19 pandemic, filed for Chapter 11 chapter safety in america on Saturday for the second time in two years because it plans to wind down its retail and wholesale operations.
The retailer, which has been in enterprise for over 40 years and sells celebration provides from themed decorations to Christmas costumes, mentioned that each one of its 700 shops within the nation would stay open because it commences a going-out-of-business sale.
The corporate together with sure of its subsidiaries filed for Chapter 11 within the U.S. Chapter Court docket for the Southern District of Texas. In a submitting with the court docket, Celebration Metropolis Holdco listed each belongings and liabilities within the vary of $1 billion to $10 billion and estimated to have greater than 10,000 collectors.
Celebration Metropolis Holdco’s senior lenders would supply the retailer with monetary assist essential to fund operations by way of the wind-down course of, the Woodcliff Lake, New Jersey-based firm mentioned in a press release.
Troubled retailers usually search chapter safety throughout the vacation season to benefit from any money infusion supplied by latest gross sales.
Celebration Metropolis, which operates each brick-and-mortar shops and an e-commerce web site, mentioned it might retain most of its 12,000 workers throughout the sale interval to help with the wind-down course of.
The corporate first filed for Chapter 11 chapter safety within the U.S. in January final 12 months. Later that 12 months it reached a plan to exit chapter, which noticed a cancellation of about $1 billion in firm debt.
The corporate has suffered because the pandemic as a consequence of lockdowns and retailer closures, together with stock shortages and tight helium provides as a consequence of international provide chain disruptions.
Amscan, a designer, producer, and distributor of celebration merchandise that’s operated by Celebration Metropolis Holdco, additionally filed for chapter on Saturday.
(Reporting by Mrinmay Dey in Bengaluru; Enhancing by Frances Kerry)
