Party America’s Turn Around Success
In 1996, Marty Allen, who is known for his ability to turn companies around, took control of a failed merger between Party America and Party World. Allen who assumed Party America’s president and CEO title, successfully took the company in and out of Chapter 11 bankruptcy in six months from July through December 1997, making it one of the shortest Chapter 11 restructurings in business.
Since that time Alameda-based Party America has posted five consecutive years of sales growth and profit. Today, the company is approaching $50 million in sales, with 500 employees, and continues to make waves in its industry.
At the end of 2003, the 37-store party supply retailer acquired Paper Warehouse Inc. Paper Warehouse had filed Chapter 11 under bankruptcy protection, and U.S. Bankruptcy Court approved the tentative agreement for the corporation to sell its 62 stores; its subsidiary, Paper Warehouse and Party Universe names to 51 franchises in 22 states; and the PartySmart.com website to Party America.
This was an important acquisition for Party America, because the company will now rank among the largest party supply chains in the nation.
“We saw so many mutual benefits by joining these two companies, the purchase for us really made sense,” said Party America CEO Allen. “Our inventory and number of locations will now make us a $150 million dollar company with over 135 stores.” It also gives Party America, which had solely a west coast presence prior to the acquisition, national presence and recognition.