| Metric | Details |
|---|---|
| Entity Status | Liquidated: Second Chapter 11 December 2024 |
| First Chapter 11 | January 2023 (reorganized, emerged October 2023) |
| Second Chapter 11 | December 2024 (liquidation) |
| Company Stores | The debtors’ cash collateral motion in the second Chapter 11 case set a February 28, 2025 milestone to complete all inventory liquidations and vacate all retail premises; 17 franchise stores still operate (partycity.com, October 2026) |
| Brand Status | Name continues online, at 17 franchise stores and through Staples locations (partycity.com, October 2026) |
| Pre-Bankruptcy S&P / Moody’s | Deeply distressed before its final filing (historical ratings not shown) |
| Investment Grade Status | No Longer Operating (Not Rated) |
| Former Typical Building Size | About 10,000 to 20,000 SF (company-operated stores, Form 10-K for 2022) |
Party City is no longer operating. Party City is no longer operating; our ratings database holds no current verified rating for it. Ratings checked September 27, 2026. See the investment grade credit tenant ratings table.
What Happened to Party City?
Party City filed Chapter 11 twice in under two years. Party City Holdco Inc. and certain of its domestic subsidiaries first filed on January 17, 2023 in the U.S. Bankruptcy Court for the Southern District of Texas (Form 10-K for 2022). The plan of reorganization became effective and the company emerged from the first bankruptcy on October 12, 2023, with its secured notes exchanged for equity in the reorganized company (Form 10-K for 2022, filed March 28, 2024).
About 14 months after emerging from the first bankruptcy, Party City Holdco Inc. filed Chapter 11 for the second time on December 21, 2024 (Bankr. S.D. Tex. No. 24-90621) to carry out an orderly wind down, selling the merchandise in its stores through store closing sales. Its cash collateral motion set February 28, 2025 as the date to complete all inventory liquidations and vacate all retail premises, with a separate sale process for its intellectual property. The Party City name continues online, at 17 franchise stores and through Staples locations (partycity.com, October 2026).
Former Party City Properties: Re-Tenanting Considerations
Party City leased all of its company-operated stores, which generally ranged from about 10,000 to 20,000 square feet (Form 10-K for 2022). Spaces in this size range can suit a range of replacement concepts, but re-leasing results vary by center and market, so check the current occupancy and lease status of any former Party City space.
| Replacement Category | Format Fit (10,000 to 20,000 SF) | Credit Quality |
|---|---|---|
| Urgent care / medical | Varies by operator; confirm space needs | Varies by operator |
| Five Below / value variety | Possible; Five Below’s new store model is about 9,500 square feet (Form 10-K) | Five Below not yet verified; others vary |
| Beauty retail | Varies by format; confirm space needs | Varies |
| Food & beverage / QSR | Varies by concept; confirm space needs | Varies |
| Pet supplies specialty | Varies by operator; confirm space needs | Varies |
| Fitness (Planet Fitness) | Possible; Planet Fitness’s 2025 Form 10-K describes its clubs as typically 20,000 square feet | Not Yet Verified; 2,604 of 2,896 clubs were franchisee-owned at December 31, 2025 (Planet Fitness Form 10-K), so confirm the tenant entity in the lease |
Did Party City go out of business?
The company did. Party City Holdco Inc. filed Chapter 11 for the second time on December 21, 2024 and wound down its company-operated stores through store closing sales, with a February 28, 2025 milestone to vacate all retail premises. The Party City name continues online, at 17 franchise stores and through Staples locations (partycity.com, October 2026).
What happened to Party City NNN leases?
In the second Chapter 11 case, the debtors could either assume and assign store leases to other tenants through the sale process or reject them (11 U.S.C. 365); a rejected lease leaves the landlord with vacant space and a claim against the estate. Check the court docket for what happened to a specific lease. Party City’s company-operated stores generally ranged from about 10,000 to 20,000 square feet (Form 10-K for 2022), a size that can suit healthcare, beauty, value retail and food and beverage users, although re-leasing results vary by center.
Related NNN Tenants
- Barnes & Noble
- Bed Bath & Beyond
- Best Buy
- Big Lots
- BJ’s Wholesale Club
- Burlington
- Costco
- Dick’s Sporting Goods
- Dillard’s
- DSW
- Dunham’s Sports
- Five Below
- Floor & Decor
- Harbor Freight
- Home Depot
- JCPenney
- Joann Fabric & Crafts
- Kirkland’s
- Kohl’s
- Lifetime Fitness
- Lowe’s
- Macy’s
- Michaels
- Nordstrom
- Office Depot / OfficeMax
- Old Navy / Gap
- Petco
- PetSmart
- Planet Fitness
- Ross Dress For Less
- Staples
- The Container Store
- TJ Maxx / HomeGoods / Marshalls
- Tractor Supply Co.
- Ulta Beauty
- Ollie’s Bargain Outlet
- Target
- Walmart
- Sam’s Club
Own a Former Party City Property?
When a tenant closes stores or stops operating, the value of the property depends on the current lease, any replacement tenant and how easily the building can be re-leased. We can review the lease and the replacement tenant’s credit, prepare an opinion of value from current listings and recent sales, and help you sell or find a replacement property in a 1031 exchange.
