Aug 4 (Reuters) - Party City Holdco is considering splitting up its balloon manufacturing and retailing businesses as the latter charts a course out of bankruptcy, Bloomberg News reported on Friday, citing people familiar with the situation.

The company has held confidential talks with debt holders about spinning off its Anagram unit, the report said, adding that talks are continuing and the situation may change.

Party City did not immediately respond to Reuters request for a comment.

In January, Party City filed for bankruptcy protection after it saw its fortunes taper following a slowdown in sales due to lockdowns and store closures.

This along with inventory shortages and tight supplies of helium due to global supply chain disruptions hurt the party supplier further.

The company said its subsidiaries outside of the United States, its franchise stores and its Anagram business were not part of the bankruptcy proceedings. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur)