Party City intellectual property, wholesale business sold for $20 million

Party City declared bankruptcy in December with plans to go out of business.

Party City Holdco Inc.’s wind down is nearly complete.

The company, which declared bankruptcy in December with plans to go out of business, said it has completed auctions of “substantially” all of Party City’s intellectual property and related wholesale intangible assets as well as a “significant” portion of its real real estate lease portfolio.

Following “robust” bidding, New Amscan, an affiliate of Ad Populum, a global marketer of pop culture goods and costumes, emerged as the winning bidder for the Party City brand and related Amscan operating assets. (Amscan is Party City's wholesale division, which supplied party goods to retailers worldwide.)

In January, Party City entered into a stalking horse agreement with Ad Populum, whose bid was subject to higher or otherwise better offers. Its winning bid had a net value of $20 million, comprised of $16 million in cash and additional consideration, which was twice the value of the company’s stalking horse bid heading into the auction.

"We are excited to lead the transformation of the Party City and Amscan brands,” Joel Weinshanker, CEO of Ad Populum, stated in January. “By combining our strengths in sourcing and distribution with Party City's legacy, we are confident in our ability to innovate and grow in the party supply market, delivering products that inspire and elevate life's celebrations."

Real Estate

Party City’s lease auction process has resulted in approximately $14.5 million of gross proceeds, with the potential for additional value to be generated. A hearing has been scheduled for Feb. 26 to receive court approval of these sales.

Efforts to monetize remaining leases are continuing. Interested parties can visit click here for more information on available sites.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP are serving as legal counsel. AlixPartners LLP is serving as restructuring advisor,

Hilco Streambank and Gordon Brothers Brands are collectively serving as intellectual property advisor, A&G Real Estate Partners is serving as real estate advisor, and Gordon Brothers is serving as store closing consultant to the Company.

Ad Populum’s brands include NECA, Kidrobot, Wizkids, Chia Pet, Rubies, Smiffys, Enesco, Graceland and more.