GB Merchant Partners Announces the Acquisition of Party Concepts by Party America

Press Release
BOSTON, MA — GB Palladin Capital, LLC, the private investment division of Gordon Brothers Group, LLC, announces that Party America, one of its portfolio companies, has completed the acquisition of Party Concepts. Party America, a 124-store retailer of party supplies, is based in Alameda, California. Party Concepts is headquartered in Appleton, Wisconsin, and operates 170 stores in 35 states under the names Great Party!, Paper Factory and Paper Outlet.

Party America is now the second largest party supply chain in the United States with over 230 company-owned stores and 60 franchise locations in 48 states. Previously, Party America purchased Paper Warehouse, a large party supply chain based in Minneapolis, Minnesota. Party America took top honor as the Party Retailer of the Year at the 2004 National Party Retailing Awards.

"Over the six years that we have held a majority ownership in Party America, we have been extremely impressed with the ability of both Marty Allen and his management team to grow operations profitably," stated Matthew Kahn, Principal and Managing Director of GB Palladin. "We successfully integrated the Paper Warehouse acquisition in 2003. With this second acquisition, we are investing in Party America’s continued growth and market leadership."

About GB Palladin Capital: GB Palladin Capital, LLC, provides junior secured loans (Tranche B), mezzanine and equity financing to retailers and consumer product companies. Loans may be collateralized by inventory, real estate, fixed assets or non-traditional assets, or, along with equity investments, may be based on a company’s enterprise value. Gordon Brothers Groups’ operational expertise and understanding of asset values allows GB Palladin Capital to assume high-risk positions and create value that others often may not perceive.

About Gordon Brothers Group: Founded in 1903, Gordon Brothers Group, LLC (www.gordonbrothers.com) provides global financial, operating and advisory services to companies at times of growth or restructuring. Gordon Brothers Group delivers customized business solutions for companies that seek to maximize liquidity of under-performing inventory, real estate, commercial and industrial assets, accounts receivable and intellectual property; facilitates mergers and acquisitions; appraises assets and provides equity and debt capital. During the past three years, Gordon Brothers Group disposed of over $12 billion worth of inventory, mitigated $3 billion of leasehold obligations and conducted appraisals on over $100 billion of assets.