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Party City Is Going Out Of Business After 40 years
After nearly four decades in business, Party City is closing its doors for good.
The New Jersey-based retailer, known for its balloons, Halloween costumes, and party supplies, announced it is shutting down all operations.
This comes after years of financial woes, rising costs, and fierce competition that the company could no longer withstand.
Party City’s troubles began long before the announcement of its closure.
Earlier this month, internal signs of collapse started surfacing when corporate employees were sent home, and headquarters were locked down.
This grim development followed years of battling persistent financial struggles.
The company first filed for Chapter 11 bankruptcy in January 2023, overwhelmed by $1.7 billion in debt.
Although it wiped out nearly $1 billion of what it owed by restructuring, it was unable to fully bounce back.
Growing competition from e-commerce giants like Amazon and big-box retailers such as Walmart and Costco left Party City struggling to attract customers.
“Despite our very best efforts, we’ve not been able to overcome these financial challenges,” CEO Barry Litwin said in a tearful announcement to employees. Hired just four months ago, Litwin had prioritized stabilizing the company’s financial health, but the hurdles proved insurmountable.
For Party City employees, the shutdown has been devastating.
More than 6,000 full-time and 10,000 part-time staff were blindsided by the abrupt end.
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Corporate employees were notified during a video conference held by Litwin that their employment would cease immediately, with no severance packages and benefits ending as the company winds down.
Store closures across Party City’s nationwide locations are expected to wrap up by February 1, 2025.
At its peak, Party City operated over 850 stores across the globe and dominated the party supply market in the U.S.
The pandemic only accelerated the decline.
Party City Is Going Out Of Business After 40 years
was originally published on
wibc.com
