By Mrinmay Dey
(Reuters) – Occasion Metropolis, which has been struggling because the COVID-19 pandemic, filed for Chapter 11 chapter safety in the USA on Saturday for the second time in two years because it plans to wind down its retail and wholesale operations.
The retailer, which has been in enterprise for over 40 years and sells occasion provides from themed decorations to Christmas costumes, mentioned that each one of its 700 shops within the nation would stay open because it commences a going-out-of-business sale.
The corporate together with sure of its subsidiaries filed for Chapter 11 within the U.S. Chapter Courtroom for the Southern District of Texas. In a submitting with the courtroom, Occasion Metropolis Holdco (OTC:) listed each belongings and liabilities within the vary of $1 billion to $10 billion and estimated to have greater than 10,000 collectors.
Occasion Metropolis Holdco’s senior lenders would offer the retailer with monetary assist essential to fund operations by way of the wind-down course of, the Woodcliff Lake, New Jersey-based firm mentioned in an announcement.
Troubled retailers usually search chapter safety throughout the vacation season to make the most of any money infusion offered by current gross sales.
Occasion Metropolis, which operates each brick-and-mortar shops and an e-commerce web site, mentioned it will retain most of its 12,000 workers throughout the sale interval to help with the wind-down course of.
The corporate first filed for Chapter 11 chapter safety within the U.S. in January final 12 months. Later that 12 months it reached a plan to exit chapter, which noticed a cancellation of about $1 billion in firm debt.
The corporate has suffered because the pandemic attributable to lockdowns and retailer closures, together with stock shortages and tight helium provides attributable to international provide chain disruptions.
Amscan, a designer, producer, and distributor of celebration merchandise that’s operated by Occasion Metropolis Holdco, additionally filed for chapter on Saturday.
