Party goods retailer considering sale

Is Party City exploring a return to private ownership?



The retailer is considering a sale after being approached by a private equity firm about a leveraged buyout, Reuters reported. Buyout firm Thomas H. Lee Partners LP, which owns 55% of Party City, took the company public in 2015.



Party City’s retail operations include over 900 specialty retail party supply stores (including approximately 150 franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites. It has recently been buying back its franchised locations.



In January, Party City acquired 18 franchise stores in Louisiana, Alabama, Mississippi and Florida. And in March, it acquired 18 franchise stores in North Carolina and South Carolina.



“Acquiring franchise stores over time is an integral component of our strategy to invest in growth opportunities at attractive multiples of earnings,” CEO James M. Harrison said in a statement in January. “This acquisition gives the company total ownership of the Louisiana and Alabama markets, creating an opportunity to open additional company-owned stores over time and strengthen the brand integrity of these locations, improving the experience for our customers.”