Party City Announces Additional Actions in Response to COVID-19

ELMSFORD, N.Y., April 08, 2020 (GLOBE NEWSWIRE) -- Party City Holdco Inc. (the “Company” or “PRTY”; NYSE:PRTY) today announced additional measures it is taking in response to the current business environment created by COVID-19.

As previously announced on March 27, 2020, the Company extended the temporary closures of its stores until further notice. The Company’s e-commerce site, www.partycity.com, remains fully operational and the number of stores offering curbside pickup continues to expand.

Today the Company announced the following additional actions:

• A temporary base salary reduction of 50% for Brad Weston, Chief Executive Officer, 30% for Todd Vogensen, Chief Financial Officer and 15% to 20% for the remainder of the executive leadership team
• The Board of Directors has elected to forgo their respective quarterly cash retainers for the second quarter of 2020
• The furlough of approximately 90% of store employees and 70% of wholesale, manufacturing and corporate employees. The Company will continue to provide health benefits to furloughed employees
• Non-payroll expense reductions including advertising, occupancy and other store operating expenses, as well as professional and consulting fees
• Cancellation of orders and negotiated receipt delays to manage inventory levels
• Significant reduction in 2020 capital expenditure budget

Brad Weston, CEO, stated, “As we continue to navigate these unprecedented times, we made the difficult decision to furlough a majority of our team members. We will continue to provide these team members health benefits and have also established the PCHI Employee Assistance fund for employees who are temporarily experiencing economic hardship due to the coronavirus pandemic. We believe our aggressive focus on expense, inventory and capital expenditure reduction will help preserve our financial health and flexibility as we work to ensure readiness to re-open our stores and welcome back our team members and customers as soon as the situation permits.”

Mr. Weston added, “In the meantime, with our fully operational e-commerce site and expanding curbside pick-up, we are here to meet customers’ needs, with relevant offerings like our ‘Adventure in a Box’ and ‘Birthday in a Box’ assortment, as adults and children alike find new ways to adapt to the current environment and creatively and safely celebrate at home.”