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Party City Faces Helium Shortage, Closing 45 Stores
Elmsford, NY-based Party City plans to close roughly 45 of its approximately 870 Party City locations in 2019. The store closures will take place throughout the year.
Party City’s James M. Harrison says, “Overall, our first-quarter results were largely in line with our expectations on the top and bottom lines, inclusive of the helium shortage, which negatively impacted our latex and metallic balloon categories.”
The company reports it signed a letter of agreement for a new source of helium, which would provide for additional quantities of the gas beginning this summer and continuing for the next 2.5 years. Harrison says, “We believe this new source should substantially eliminate the shortfall we are experiencing at current allocation rates and improve our ability to return to a normal level of latex and metallic balloon sales.”
Total revenues increased 1% on a reported basis to $513.1 million, and retail sales increased 4% on a reported basis, driven primarily by square footage growth from store acquisitions.
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