Party City Holdco Inc (PRTY.N), a U.S. retailer of party supplies such as balloons and costumes, is exploring a sale after being approached by a private equity firm about a leveraged buyout, people familiar with the matter said on Thursday.

A sale would come two years after buyout firm Thomas H. Lee Partners LP took the company public. Since then, Party City’s sales have proven resilient despite the increasing popularity of internet shopping. Thomas H. Lee owns 55 percent of Party City, while Advent International LP, another buyout firm, owns 19 percent.

Party City shares were up 9.5 percent at $16.15 on Thursday afternoon, boosting the company’s market capitalization to nearly $2 billion. Party City had $1.7 billion in debt as of the end of December.

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