Dive Brief:
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Elmsford, NY-based Party City, the only party-goods retailer that has coast-to-coast stores in the U.S. and Canada, said it expects to raise up to $372 million and be valued at nearly $2 billion in its initial public offering.
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Post IPO, the company will still be controlled by its private equity investors, including Thomas H. Lee Partners and Advent International, a situation that "may have interests that differ from those of our other stockholders," the company said in its IPO filing.
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The retailer plans to use proceeds from the IPO to pay down debt and expand its number of stores.
Dive Insight:
In an era where e-commerce is strengthening, the party-store brick-and-mortar business seems somewhat protected. Party City’s stores are basic, warehouse-style affairs, chock full of choices for themed (or non-themed) events from picnics to weddings, and people seem to want to make those choices in person.
Indeed, Party City’s expansion is booming; the retailer wants to open 30 stores each year, with the help of the spoils of this IPO. Still, it’s not clear whether the retailer can meet its expectations, considering provisos about the control of the company and makeup of its board.