A popular retailer now declares an unexpected bankruptcy as it seeks sale in Chapter 11 according to a Texas court.
Party City’s affiliate and a top supplier Anagram Balloons on Nov. 8 filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas in Houston.
The company listed $100 million to $500 million in assets and liabilities in its petition.
The balloon retailer manufactures and sells foil balloons and inflated décor domestically and internationally to party supply specialty stores, grocers, mass marketers, parks, drugstores and discount variety stores.
Party City on the other hand provides its products directly to giant retailers like Walmart and Dollar Tree.
Anagram Balloons currently employs about 350 employees and operates a 500,000 square-foot manufacturing, production and distribution facility.
The company “has faced financial distress resulting from unsustainable debt on its balance sheet, lingering effects from the Covid-19 pandemic, global inflation and helium shortages that put strain on its balance sheet,” reports TheStreet.
Anagram sought a restructuring solution with its creditors, but was unable to reach a consensus on a reorganization transaction, according to a declaration from the company’s Chief Restructuring Officer Adrian Frankum of Ankura Consulting Group.
Debtor Anagram Holdings filed a motion seeking $22 million in senior secured debtor-in-possession financing with $10 million available immediately on approval of a interim order in order to fund the bankruptcy case and sales process.
It also seeks a $15 million first-lien asset-based loan facility from its prepetition ABL lender Wells Fargo that will roll up prepetition ABL obligations.
The debtor will seek higher and better offers for its assets from potential buyers through a bankruptcy auction that is proposed for Dec. 5.
Also Read: A Massive Retailer Now Unexpectedly Shutters Stores For 2024
Other Economy News Today
Massive layoffs in California now grow according to the latest WARN data as another business advises of upcoming job cuts.
Informatica, an enterprise cloud data management leader, last week announced its Total Revenues increased 10% year-over-year to $408.6 million.
However, despite this seemingly positive news, the company also announced it was permanently laying off a whopping 545 employees.
The company filed a WARN notice with the California Employment Development Department, advising them of the job cuts, which will take place by December 31.
“Informatica is taking a final step of our transformation to an AI-powered cloud company.
The company took a difficult action on Nov. 1 and implemented a global restructuring of their global workforce to align business efficiencies and focus on long-term success,” said a spokesperson for the company.
So far, California remains the #1 state with the most layoffs in the country.
The state has had 65,975 layoffs this year across 1,161 businesses.
In second place is New York followed by Colorado, Illinois, Texas, Washington, New Jersey, Florida, Michigan, and Georgia.
Below is a list of businesses that filed WARN notices of upcoming job cuts in California this year:
- FedEx. 405 job cuts by 11/15.
- Sonoco Products. 292 job cuts by 11/01.
- Shaw Industries Group Inc. Plant WG. 283 job cuts by 11/20.
- Matheson Flight Extenders, Inc. 257 job cuts by 11/13.
- PLI Holdings, Inc. job cuts by 11/14.
- LEER Group. 215 job cuts by 11/11.
- Dryer’s Grand Ice Cream. 1,015 job cuts by 12/15.
- Dryer’s Grand Ice Cream. 306 job cuts by 12/11.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
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