PETITION

PETITION

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PETITION
PETITION
💥This Party Sucks💥

💥This Party Sucks💥

Are we looking at another retail chapter 22 (and liquidation)?

Dec 15, 2024
∙ Paid
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PETITION
PETITION
💥This Party Sucks💥
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In today’s edition, we (i) revisit with two old friends, (ii) discuss a potential distressed situation, (iii) update coverage on Exactech Inc., and (iv) cover Vobev LLC’s chapter 11 bankruptcy filing (with an emphasis on BDC mark treatment). Let’s dig in ⬇️.


💩How’s Brick-and-Mortar Retail Doing?💩

Source: Getty Images

We noted struggles among The Container Store, Joann and The Children’s Place ($PLCE) on Wednesday …

💥Child's Play💥

💥Child's Play💥

December 11, 2024
Read full story

… but they sure don’t have a monopoly on brick-and-mortar suckery.

News broke this week that Party City might be on the verge of a Chapter 22 (“The New Jersey-based retailer, which sells balloons and other party supplies, is behind on rent at some locations and running out of cash…”). Say it ain’t so, balloon purveyor extraordinaire with an inexplicable 800+ locations! We were now-minus-14-months-younger when we first saw this language loud and proud on the company’s bankruptcy website:

Source: Kroll. Commentary: PETITION LLC

Ok, folks, so we went and looked up “future” and — to be fair to Party City and all of the professionals involved (e.g., Paul Weiss + AlixPartners) who now appear to be in position for the good ol’ fashioned and seemingly more-frequent-than-ever company-side “double dip” — it is defined by Oxford as “the time or a period of time following the moment of speaking or writing; time regarded as still to come.” It seems the “period of time” was unfortunately rather — “reportedly” of course (😜) — short. It also seems this will prove to be rather accurate:

Source: Docket 858. Commentary: PETITION LLC

You know what won’t prove to be accurate? This 👇:

Source: Docket 858-6
Lebron James Lol GIF by NBA
Source: GIPHY

Whoa man. For a pessimistic-as-all-hell-doom-and-gloom set of people who bemoan their existences on the regular (“living the dream” is a common industry refrain), we sure do find a way to exude optimism in the strangest of ways, don’t we? Like those projections, LOL. Look at that YOY sales growth projection.

Golden State Warriors Lol GIF by NBA
Source: GIPHY

And those retail store comp projections.

Lebron James Lol GIF by NBA
Source: GIPHY

That ascending gross margin.

Golden State Warriors Lol GIF by NBA
Source: GIPHY.

That transformational operating income.

giannis antetokounmpo laughing GIF by Milwaukee Bucks
Source: GIPHY

Or that EBITDA … make it stop please!

Happy National Basketball Association GIF by NBA
Source: GIPHY

We’re not done. There’s this 👇 too:

Source: Docket 858-6

Stockholder’s equity?

Celebrity gif. Kevin Hart sits on the sidelines at a basketball game holding a hand to his throat as he laughs uncontrollably.
Source: GIPHY

Who knew RX bankers were so damn funny?

More questions: does anyone at Silverpoint Capital know anything about whippets? Maybe that can save the business?

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