Major Retailer to Auction Leases on Nearly 700 Locations in Continued Bankruptcy Plan

Party City is planning to auction hundreds of store leases as part of its bankruptcy process.

Key Facts:

695 store leases in 44 states are set to be auctioned by A&G Real Estate Partners.
The auction deadline is expected in early February, pending court approval.
Store sizes range from 7,000 to 46,000 square feet.
Party City has operated for nearly 40 years and filed for Chapter 11 bankruptcy.
Mitch Modell, former CEO of Modell’s Sporting Goods, has shown interest in acquiring Party City.

The Rest of The Story:

A&G Real Estate Partners announced it would manage an auction for 695 Party City leases located in freestanding stores, power centers, strips, and city street locations. Andy Graiser, co-president of A&G, described the spaces as move-in ready, offering favorable lease terms.

Party City declared bankruptcy citing inflationary pressures, shifting consumer spending, and other challenges. The company plans to retain most of its workforce for a period as it winds down operations.

Mitch Modell’s expressed interest in “taking a run at” purchasing Party City during an appearance on FOX Business Live on Dec. 31. This would certainly shape what happens next in the retailer’s journey.

Commentary:

Party City’s auction reflects the difficulties retailers can face when market conditions, consumer preferences, and economic pressures converge. High debt and changing shopping habits are common hurdles, and businesses often turn to bankruptcy to restructure and seek new opportunities.

Although the exact outcome is unknown, observers will be watching to see whether fresh investments or new leadership can reinvigorate the brand.

The Bottom Line:

Party City’s upcoming lease auction is a significant step in its bankruptcy. Future developments will determine whether the brand regains a foothold or remains part of retail history.