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The rows of color assorted party supplies 🎈, walls and walls of costumes ranging from the overtly trampy to downright creepy 👺, aisles of almost every conceivable accessory known to man 👓, and those massive motion sensored creatures that jump scare you when you walk in every Halloween season . . . yes, it’s Party City 🥳.
We’ve all been there—waiting in that ridiculously long line one day before Halloween holding our $60 costume packaged in that sad plastic envelop fastened by 4 plastic buttons. Yes, it’s Party City 🥳.
It was reported this week that Party City is preparing a bankruptcy filing after the shares of the company fell about 50% to $0.18 cents in afternoon trade. Blood is in the water, and even the Crypto Whale Watcher is on top of it now.
It seems Party City has been too busy helping out #thickstuds to see that their bottom line was falling out.
Despite a market capitalization of $41 million, (at least they’re worth more than BlueApron), the first national party supplies retailer is facing financial difficulty with only $92MM of cash on hand in Q3 against nearly $1.8B of debt. 🤯
Party City’s struggles are largely due to the following:
There is an outside chance that Party City’s major creditors agree to restructure some of the debt burden, but don’t hold your breath.
So get your balloons 🎈, piñatas 🤡 and costumes while Party City’s stocks is still on life support, and celebrate the freedom that comes from starting fresh by throwing a party all paid for courtesy of Uncle Sam!
In light of the news at Party City, who better to fill the new gap in demand than YOU! Here's a deal that may be worth a second glance.
A party planning blog that sells digital downloads with over 50,000 social media followers making $833/month.
Purchasing Companies Through Bankruptcy -
With the looming recession, entrepreneurs who understand the opportunities that come out of a bankruptcy proceeding will feel like Georgia against TCU. . . it's too easy.
There are “363” bankruptcy sales that are held before the bankruptcy plan in confirmed. It's like a get out of jail free card for assets that can be sold free and clear of all debts in the bankruptcy.
hese 363 sales require proper notice, no objection of an interested party, and bankruptcy court approval. The bankruptcy court will scrutinize these sales to make sure none of the creditors are getting screwed before the bankruptcy plan is finalized.
Of course, more commonly, the sale of certain assets is usually baked into the final bankruptcy plan, which is reviewed by the creditors and confirmed or rejected by the bankruptcy court.
The bankruptcy world is fertile ground for discounted businesses and 363 sales are one of the best ways to make them happen.
That's a wrap for today. Go get that booty & see ya next week! If you want more, be sure to follow our Twitter (@DealMavenio)
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5-minute newsletter keeping thousands of entrepreneurs in the loop.