PRTY - Party City files for Chapter 11 protection

Beleaguered retailer Party City Holdco ( NYSE: PRTY ) has filed for bankruptcy protection, according to a new SEC filing released Wednesday.

The filing notes that debtors have filed with the Bankruptcy Court “a variety of motions seeking first-day relief” in order to continue operations under Chapter 11 protection. These clauses are expected to keep existing customer and vendor contracts in place and retain employees. The company is estimated to employ about 10K workers as of the close of 2022.

The company has enlisted AlixPartners as a financial advisor since November 2022 and, as of the bankruptcy filing, AlixPartners managing director David Orlofsky has been enlisted to serve as the Chief Restructuring Officer.

Shares of the New Jersey-based retailer rose over 10% in premarket trading on Wednesday despite the company’s insolvency.

Read more on the stock’s recent volatile trading trends .

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