![]() Its affordable pricing and product variety helped it gain popularity among consumers, and it used partnerships with influencers like James Charles and Jeffree Star to create a robust social media presence. Forma Brands originally launched as Morphe in 2008. Party City could emerge from bankruptcy with a much smaller brick-and-mortar footprint - while it aims to keep some of its stores open, it is exploring store closures amid bankruptcy proceedings.įorma Brands - parent company of beauty brands like Morphe, Lipstick Queen, and Bad Habits - filed for Chapter 11 bankruptcy at the start of 2023. Having secured a $150M bankruptcy loan, the company is planning to keep operations running while it restructures its debt load - as of the end of September 2022, Party City had $1.7B in debt and $122M in available liquidity. In addition to a helium shortage in 2019 (which impacted the retailer’s balloon business), increased costs amid the pandemic, and an inflation-driven slowdown in consumer spending, Party City has also run up against rising competition from big box and online retailers. ![]() In mid-January 2023, party supply store chain Party City filed for bankruptcy protection. * Denotes a company’s second or third bankruptcy Companies that filed for bankruptcy in 2023 so far: Party City Companies that filed for bankruptcy in 2015.Companies that filed for bankruptcy in 2016.Companies that filed for bankruptcy in 2017.Companies that filed for bankruptcy in 2018.Companies that filed for bankruptcy in 2019.Companies that filed for bankruptcy in 2020.Companies that filed for bankruptcy in 2021.Companies that filed for bankruptcy in 2022.Companies that filed for bankruptcy in 2023 so far.As we’ll see, Amazon is not the only reason that physical retail is troubled - mounting debt and retailers’ own missteps and lack of adaptability are also to blame, among other factors. In this report, we dig into 148 recent bankruptcies starting in 2015 and the reasons behind them. With retailers facing old challenges in addition to combating newly rising prices and a pullback in consumer spending, some reports indicate that retail bankruptcies may flare up once again in 2023. In 2022, only a handful of companies went under.īut this doesn’t mean that retail is out of the woods just yet. While there were 52 retail bankruptcies in 2020, 2021 saw just 21 - a 60% drop year-over-year, according to Axios. Following 2020, retail experienced a significant rebound as consumers returned to stores.
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