Party City Exploring a Sale?
Party City is exploring a sale after being approached by a private equity firm about a leveraged buyout, according to reports. If sold, a sale would come two years after buyout firm Thomas H. Lee Partners LP took the company public. Since then, Party City's sales have proven resilient despite the increasing popularity of online shopping. Thomas H. Lee owns 55 percent of Party City, while Advent International LP, another buyout firm, owns 19 percent. Party City is working with investment bankers on a sale process, which is still in an early stage, said the reports.
Total Retail's Take: Like many retailers today, Party City is exploring a sale amidst declining revenues. While Party City's net sales in 2016 were up 1.2 percent year-over-year, same-store sales decreased by 1.3 percent. Like office supplies retailer Staples, which is also exploring a sale amid sliding shares, Party City is the largest retailer in its niche. That may entice buyers to snap up a valuable asset.