As of Friday, December 20, CNN reports that Party City is laying off all of its corporate employees and is going out of business immediately after 38 years in operation.
During a conference meeting Friday morning, the well-known party supply retailer, which has two sites in Oregon, told corporate staff that it is closing its remaining stores. According to the article, the corporation also disclosed during the meeting that its corporate staff will be laid off as of today, losing their benefits and receiving no severance money.
Party City CEO Barry Litwin stated on the conference call, “That is without a doubt the most difficult message that I’ve ever had to deliver.” It’s crucial that you understand that we have taken every precaution to try to prevent this result. Regretfully, a wind-down procedure must be started right now.
According to Litwin, the company’s decision to shut down came after it was unable to overcome its financial difficulties and fight inflation. Despite a decline in customer spending, these problems have raised the company’s overall expenses.
According to NJ BIZ, Party City first contemplated declaring Chapter 11 bankruptcy in early December 2024 before closing. Since January 2023, when it made an effort to restructure, reduce its $1.8 billion in debt, and boost savings, this would have been its second file.
In an effort to reduce expenses throughout 2023, the party supply store closed 22 underperforming locations nationwide and an additional 35 by the middle of May. Before the statement on Friday morning, it closed more than 60 stores.
In 1986, Party City was established in East Hanover. Across more than 70 nations, the party supply store has roughly 850 outlets.
It soon gained popularity as a place to buy costumes and party supplies, particularly around Halloween. Due to its success, the company is now the biggest retailer of party supplies in the United States, Canada, and Mexico.
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