Party City Cleared to Exit Bankruptcy, Avoiding Fate of Peers

Party City Holdco Inc. on Wednesday received court approval to exit bankruptcy and emerge with a leaner balance sheet, avoiding the fate of retail peers who stumbled in Chapter 11 and ceased operations.

The New Jersey-based retailer is set to hand ownership of the company to lenders and reduce its debt load by some $1 billion, according to court papers. US Bankruptcy Judge David R. Jones on Wednesday said he would approve the company’s restructuring plan.

“This plan sets the company up for success going forward,” Ken Ziman, an attorney for the company, said during the hearing. “And most ...