Party City
Party supplies retailer for celebrations and events.
PE-OWNED
Acquired by Thomas H. Lee Partners2012-07-01
What Made It Great
Making every celebration special with complete party supplies.
What PE Will Likely Do
Party City will likely close many of its retail locations, reducing consumer access to its full range of party supplies and decorations
The quality and variety of Party City's party products will likely decline as the company cuts costs, leading to cheaper materials, fewer specialty items, and a more limited selection
Customers may experience slower or less reliable delivery of online orders as the company prioritizes cost savings over service quality
Party City's in-store experience will likely deteriorate, with less well-stocked shelves, fewer employee-assisted services, and a general decline in store upkeep and presentation
Expected Timeline
“0 to 6 months months”
Announcements about 'transformation' and 'optimization' initiatives, potentially including store closure plans
“6 to 12 months months”
First round of store closures, staff reductions, and supply chain changes announced
“12 to 24 months months”
Noticeable decline in in-store product selection, quality, and availability; delivery times may increase
“24 to 48 months months”
Bankruptcy rumors begin, more aggressive cost cutting leading to further store closures and product quality degradation
“48 to 60 months months”
Potential liquidation, restructuring, or fire sale of remaining assets
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consider stocking up on your favorite Party City products and decorations before availability and quality decline
Be prepared for less reliable and slower delivery of online orders, as well as a less enjoyable in-store shopping experience
Research alternative party supply retailers and consider switching to those that are not PE-owned, to ensure a consistent and reliable customer experience
Alternatives
Employee-owned warehouse retailer
Publicly traded retailer with strong values