Party City Holdco Inc, a retail company specializing in party supplies, is facing an investigation by Pomerantz LLP on behalf of investors. The investigation comes after Party City filed for bankruptcy and its auditor resigned, leading to a significant drop in the company's stock price [1033c53f].
The bankruptcy filing and auditor resignation have raised concerns about the financial stability of Party City Holdco. This has resulted in a loss of investor confidence and a decline in the company's stock value [1033c53f].
Party City Holdco is known for its extensive range of party supplies and decorations. However, the company has been facing challenges in recent years, including increased competition from online retailers and changing consumer preferences. These factors, combined with the impact of the COVID-19 pandemic, have put significant pressure on Party City's financial performance [1033c53f].
The investigation by Pomerantz LLP will examine the circumstances surrounding Party City's bankruptcy filing and the resignation of its auditor. The goal is to determine if there were any violations of securities laws or breaches of fiduciary duty that may have contributed to the decline in the company's stock price [1033c53f].