Disposition of Assets and Assets and Liabilities Held for Sale

12 Months Ended

Dec. 31, 2020

Discontinued Operations And Disposal Groups [Abstract]

Disposition of Assets and Assets and Liabilities Held for Sale

Note 6 – Disposition of Assets and Assets and Liabilities Held for Sale

In January 2021, the Company closed the previously disclosed sale of a substantial portion of its international operations. The announced sale had a total transaction value of approximately $50.7 million. The Company will use the net proceeds to paydown debt.

As of December 31, 2020, the Company reported the assets and liabilities of the international operations as held for sale in its consolidated balance sheet and include the following:

	Fiscal Year Ended December 31, 2020
	Wholesale		Retail		Total
Cash	$	25,989	$	5,639	$	31,628
Accounts receivable, net		31,932		460		32,392
Inventories, net		55,574		10,526		66,100
Prepaid expense		4,375		4,419		8,794
Goodwill		13,405		-		13,405
Other assets, net		1,891		2,848		4,739
Total assets held for sale	$	133,166	$	23,892		157,058
Held for sale reserve						(73,948	)
Assets held for sale, net					$	83,110
	Fiscal Year Ended December 31, 2020
	Wholesale		Retail		Total
Loans and notes payable	$	1,311	$	—	$	1,311
Accounts payable		23,364		2,107		25,471
Current operating lease liability		4,174		384		4,558
Accrued expenses		16,527		6,998		23,525
Income taxes payable and Deferred income tax liabilities		258		1,976		2,234
Long term obligations excluding current portion		40		-		40
Other long-term liabilities		-		3,354		3,354
Long term operating lease liability		6,167		1,832		7,999
Total, net	$	51,841	$	16,651	$	68,492

Additionally, the company recorded a loss reserve of $73,948 against the net assets.

On October 1, 2019, the Company sold its Canadian-based Party City stores to a Canadian-based retailer for $131,711 and entered into a 10-year supply agreement under which the acquirer agreed to purchase product from the Company for such Party City stores, as well as the acquirer’s other stores.  The Company will use the net proceeds to paydown debt. For the years ended December 31, 2019, 2018, and 2017, the Canadian-based Party City stores had pre-tax income of $2,631, $10,737, and $8,947 respectively. The Company recorded a $2,873 gain on sale of assets, which is reported in Other expense, net on the Consolidated Statement of Operations and Comprehensive (Loss) Income.