Company emerges from bankruptcy and sets a course forward, including the closure of one site and the launch of a new furniture line.
Classic Party Rentals Inc., based in Inglewood, Calif., with 30 locations across the U.S., filed chapter 11 papers in U.S. Bankruptcy Court in Wilmington, Del., in February, and announced in April that Apollo Global Management submitted the winning offer in a court-supervised auction process to acquire substantially all of Classic’s business. The company announced in June that it would close its operation in Secaucus, N.J., notifying the New Jersey Department of Labor and Workforce Development that it “has elected to cease operations in the tri-state area due to competitive market conditions.”
In July, president and CEO Jeff Black answered questions from InTents.
Q: How is Classic focusing on the future?
A: With the Apollo Global Management transaction completed, we have successfully emerged with a strengthened and streamlined capital structure, significantly less debt and the financial flexibility to continue investing in the business, our people and our clients. Now that we have the financial resources, we will centralize and standardize driving efficiencies in our strategic rental products that are fashionable and innovative. We have already purchased over $5 million in inventory and plan to heavily invest in our inventory throughout the year to deliver the highest quality products with the most extensive and creative choices to our clients.
One of our first projects is a new Classic designed and manufactured furniture line that launched this summer in our California markets. Classic will expand on these unique offerings into new tabletop designs, lighting capabilities, production services and updated tenting options. We are also making new infrastructure investments and operational improvements that are designed to help us serve our clients more effectively and efficiently.
Q: How would you describe Classic’s position in the industry at this moment?
A: Classic has been and will continue to be the event services provider of choice across the U.S. for marquee events, iconic brands, global clients and influential caterers and event planners. Our team is focused on ensuring we have new, refreshed inventory across all of our locations, and is way ahead of the fall and holiday events seasons.
We are excited about continuing to support our clients’ special occasions, and we are now much more strongly positioned to serve our clients with new and unique offerings to help them create memorable life moments.
Q: Why was the Secaucus site closed? Is each Classic market being evaluated individually, and is there the potential for additional closures?
A: Classic consolidated some of its locations to have a more efficient and focused approach to servicing our clients and improved access to our substantial depth of inventory. We have no plans to close any other showrooms. In the future, Classic will continue to explore expansion opportunities in products, services and geographies where Classic feels the market, ability to add value to the potential clients and Classic’s unique capabilities are strongly aligned.
Q: How would you characterize Classic’s relationship with clients, event professionals and other vendor-partners?
A: Classic Party Rentals will remain a strategic partner to our clients as we continue to lead the U.S. event rental and service industry—we are even better positioned to provide our clients with innovative ideas, product quality and variety and high service levels our clients have come to expect from our teams.
Our teams will continue to work diligently to provide clients with the innovative ideas, product quality and variety, and high service levels they have come to expect from our teams.