Why the Stock of Party City Is Falling Today
Shares of Party City (NYSE: PRTY) traded down more than 18% on Wednesday after the specialty retailer disclosed that its former private equity owner was distributing its shares. Party City shares were already under pressure due to the company's weak earnings, and the distribution threatens to kick off another round of selling.
Thomas H. Lee Partners (THL) took Party City public in 2015, but the private equity firm held on to more than 35 million shares, or 37.5% of the company's total, after the offering.
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Source Fool.com
