Party City has entered into an agreement to sell its intellectual property and assets to New Amscan PC as part of the Chapter 11 process.
New Amscan PC will act as the stalking horse bidder. The company is an affiliate of Ad Populum, a global leader in pop culture merchandise and the costume industry.
The agreement is subject to higher or otherwise better offers and Bankruptcy Court approval.
The auction for the company’s brand and assets will take place on February 6, with the bid deadline set on February 4. Hilco Streambank and Gordon Brothers Brands will oversee the sale process.
Party City has offered party supplies such as decorations, balloons, and costumes for over four decades. It also owns a wholesale division named Amscan, which supplies party goods to retailers worldwide.
The company filed for Chapter 11 bankruptcy for the second time earlier this month due to an “immensely challenging environment”. The first filing was in January 2023.
“The sale agreement helps to ensure the preservation of the Party City and Amscan brands for the benefit of vendors and customers and establishes a solid baseline for the ongoing intellectual property sale process,” said David Peress, executive VP of Hilco Streambank.
“By combining our strengths in sourcing and distribution with Party City’s legacy, we are confident in our ability to innovate and grow in the party supply market, delivering products that inspire and elevate life’s celebrations,” added Joel Weinshanker, CEO of Ad Populum.