Party City Holdco Inc. is retaining documents and data in connection with a Securities and Exchange Commission probe, according to bankruptcy court papers.
(Bloomberg) — Party City Holdco Inc. is retaining documents and data in connection with a Securities and Exchange Commission probe, according to bankruptcy court papers.
The regulator sent a letter to the bankrupt party supplies retailer on July 12 asking it to preserve and retain information “relevant to an ongoing investigation,” Party City said in court papers filed Friday. The letter came a little more than a month after its longtime auditor, Ernst & Young LLP, resigned. The disclosure was included in a section on the accountant’s resignation.
Additional details about the nature of the investigation, including its target, weren’t disclosed. Party City said it’s complying with the SEC’s request.
The SEC and Party City declined to comment. Ernst & Young didn’t immediately respond to a request for comment.
After working as Party City’s financial auditor for more than two decades, EY quit in June in the wake of a disagreement about how and when the company should have warned the market there was substantial doubt about its ability to survive, the company said in a securities filing.
“The company strongly disagrees with EY’s assertions in its resignation letter to the extent that they inaccurately imply that the company refused to make any required disclosures under the federal securities laws,” Party City said in the filing.
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