Party City Partners with Newmark for Strategic Retail Portfolio Optimization

Party City Holdco. Inc is undergoing a significant restructuring process, entrusting Newmark’s Excess Space Retail Services Inc. with managing site selection, lease renewals, and overall retail location optimization.

Partnership with Excess Space

Marc Ehle, executive vice president of enterprise operations at PCHI, highlights ExcessSpace's previous assistance in strategic negotiations with landlords. With over 750 locations across 45 states, Party City aims to enhance its retail presence, both company-owned and franchised.

Long-Term Strategy

Party City is committed to increasing in-store traffic, enhancing digital and marketing efforts, and upgrading existing locations. ExcessSpace will specifically focus on the real estate aspect of this strategy. The company also plans to accelerate the adoption of its new store format, emphasizing a sectional design catering to different celebration themes.

Overhauling Strategy

This partnership with ExcessSpace marks another step in Party City's recovery journey since filing for Chapter 11 in early 2023. The restructuring process, completed in October, significantly reduced debt, improved liquidity, and optimized the store portfolio.

Future Plans

Having emerged from Chapter 11, Party City, based in New Jersey, is now focusing on optimizing its U.S. locations, including stores like the one in Jensen Beach, Fla.