Party City Holdco Inc. (PCHI) has entered into a stalking horse agreement to sell substantially all of its intellectual property and related wholesale operating intangible assets to New Amscan PC, LLC, an affiliate of Ad Populum, LLC, as part of the Company's Chapter 11 process. This pivotal agreement marks a significant step toward ensuring continuity in the multibillion dollar party supply industry.

The sale agreement is subject to higher or otherwise better offers and Bankruptcy Court approval on the following schedule: Bid Deadline: February 4, 2025; Auction: February 6, 2025.

Party City has been a household name in the party supply industry for more than four decades, providing decorations, balloons, and costumes to millions of customers through retail and wholesale channels. Its wholesale division, Amscan, has been a leading supplier of party goods to retailers worldwide, further cementing Party City's reputation as a cornerstone of the celebrations market. The brand remains synonymous with celebrations and milestones across North America.

Ad Populum is a global leader in pop culture merchandise and the costume industry. Its affiliated businesses have built a reputation for delivering high-quality products inspired by some of the most iconic entertainment franchises.

Dan Lamadrid, Chief Financial Officer of Party City, stated: "We are pleased that this transaction offers a promising future for the Party City brand as we work to maximize value for the benefit of our stakeholders."

Joel Weinshanker, Chief Executive Officer of Ad Populum, added: "We are excited to lead the transformation of the Party City and Amscan brands. 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."

David Peress, Executive Vice President of Hilco Streambank, said: "The sale agreement helps to ensure the preservation of the Party City and Amscan brands for the benefit of vendors and customers and establishes a solid baseline for the ongoing intellectual property sale process."

Robert Himmel, Senior Managing Director at Gordon Brothers, concluded: "Through this transaction, Ad Populum will be well positioned to reimagine the Amscan wholesale distribution platform, creating a pathway for long-term success in a vital market segment in the party supply industry."

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.

DLA Piper is serving as legal advisor to Ad Populum.