More Party City store leases are going up for auction.
Acting in its capacity as real estate advisor to Party City Holdco Inc., which filed for bankruptcy in January, A&G Real Estate Partners has added eight additional locations to the list of Party City leases it is putting up for auction, for a total of 25 locations set to go on the block on or about April 14.
The latest round of leases, which were made available after terms were not reached with their landlords, include the following locations:
- California (Alameda, El Centro, Redding);
- Indiana (Kokomo);
- Louisiana (Alexandria);
- Oklahoma (Oklahoma City);
- Tennessee (Bristol);
- Texas (Dallas).
The other leases going on the block, which were previously announced, are located in:
- Georgia (Rome);
- Illinois (Bradley);
- Iowa (Waterloo)
- Louisiana (Slidell);
- Michigan (Benton Harbor, Holland, Jackson);
- Missouri (St. Joseph);
- New York (Buffalo, Bronx, Harlem, Irondequoit, Manhattan);
- Oklahoma (Lawton);
- Texas (Corpus Christi); and
- West Virginia (Beckley, Martinsburg).
The 25 stores going on the block range in size from 7,500 sq. ft. to 28,000 sq. ft. Some are freestanding, while others are in power centers, strips or city street locations. Potential users include gyms, dollar stores, local retail operators, furniture users, local specialty retailers, and non-retail users such as medical office clinics.
New York-based A&G said it continues to engage with landlords to support PCHI's real estate optimization strategy.
"The company [Party City Holdco Inc.] is working closely with us to maximize the performance of every location in its store portfolio, with a view toward achieving financial metrics that will best support the go-forward fleet," said Andy Graiser, co-president of A&G. "As PCHI optimizes its portfolio, there are tremendous opportunities being created for other retailers to gain entry to well-located stores, often with great co-tenants, in retail marketplaces across the country."
Upon filing Chapter 11, Party City Holdco received access to $75 million of a $150 million debtor-in-possession loan and reached a pre-negotiated agreement with a bondholder group to support an "expedited restructuring" that would substantially reduce its debt and “optimize its capital structure and liquidity.” At the time of the filing, Party City operated approximately 800 stores.
The U.S. Bankruptcy Court for the Southern District of Texas recently approved bid procedures governing the Party City auction, which will be held on or about April 14, 2023 as part of the company’s expedited financial restructuring. The bid deadline is April 10.
The full store list is available here.