Woodcliff Lake-based Party City Holdco Inc. is auctioning off even more stores as it prepares to go private.

As part of its expedited financial restructuring, the accessories retailer plans to offload nine additional leases in an April 28 auction, according to A&G Real Estate Partners, a New York City-based firm advising Party City.

The latest round of leases became available “after terms were not reached with the respective landlords.” It includes three stores in California, two in New York, one in Indiana, one in Ohio, one in Michigan and one in Oklahoma, A&G said.

Locations range in size from 10,000 square feet to 21,000 square feet with a mix of freestanding units and stores in power centers, strip malls or on city streets. Potential uses include gyms, dollar stores, local retail operators, furniture stores and non-retail spaces, such as medical offices, the firm said.

Since filing for Chapter 11 bankruptcy protection in January, Party City has closed 22 locations with plans to shutter 28 additional stores, pending bankruptcy court approval.

The first tranche included 12 locations in New York, Missouri, Michigan, Oregon, Oklahoma and West Virginia. The second phase targeted 10 leases in Texas, New York, Georgia, West Virginia, Louisiana, Michigan, Iowa and Illinois as well as one New Jersey site, in Woodland Park.

During an April 14 auction, arts & crafts retailer Michaels acquired four leases in Texas, Louisiana and New York, while specialty discount store Five Below took over a location in California.

In a recent statement, Andy Graiser, A&G’s co-president, said Party City “is working closely with us to maximize the performance of every location in its store portfolio” and is focused on “achieving financial metrics that will best support the go-forward fleet.”

He added that Party City’s efforts to optimize its portfolio will create “tremendous opportunities … for other retailers to gain entry to well-located stores, often with great co-tenants, in retail marketplaces across the country.”

After its bankruptcy filing, a federal judge granted Party City immediate access to $75 million of $150 million debtor-in-possession financing, enabling the retailer to continue operating in the near term. The company also entered into a restructuring agreement with a bondholder group that will enable Party City to substantially reduce its $1.67 billion debt load.

After the reorganization is complete in the second quarter of 2023, Party City said its businesses would emerge as non-publicly reporting companies. Its subsidiaries outside of the U.S., its franchise stores, and its Anagram business are not part of the bankruptcy proceedings.

Founded 36 years ago in East Hanover, Party City is the largest retailer of party goods in the U.S., Canada and Mexico and operates under the Party City, Halloween City, Toy City and Party Outlet brands.

In recent years, the company has struggled to keep pace with changing consumer behavior, particularly amid the growth of e-commerce and big box retailers. Since 2019, it has been working on large-scale changes, such as restructuring its debt and closing 55 stores.

As of April 2023, Party City still has 770 company-owned locations and 53 franchised stores.