Yesterday we heard that Bed Bath and Beyond is concerned about its future. And today, another struggling retailer joined the mix, expressing concerns of its own. ⚠️
Party City announced today that it’s preparing to file for bankruptcy within weeks. Like Bed Bath & Beyond, it’s burned through its cash trying to turn the company around. However, sales have remained weak and pressured by inflation and the softening economy.
The low-interest rate environment and strong stock market of the last decade helped buoy a lot of bad businesses. But the quickly turning tides of 2022 mean they can no longer tread water and company executives are forced to face the music.
Many analysts expect this won’t be the last bankruptcy filing we hear of in 2023. On the contrary, many of them believe the bankruptcy *party* may be just getting started. 🥁
$PRTY shares fell 50% to new all-time lows on the news. 📉
