NEW YORK (LOOTPRESS) – Party City, the well-known retailer specializing in party supplies, decorations, and costumes, announced it is going out of business after struggling to recover from financial challenges. The decision marks the end of an era for the chain, which was once a go-to destination for party essentials across the United States.
The company, which filed for Chapter 11 bankruptcy protection earlier this year, had been working to restructure its finances and reduce its debt. Despite these efforts, declining sales, increased competition from online retailers, and a challenging economic environment proved insurmountable.
Party City operates over 800 stores nationwide, and its closure will impact thousands of employees. The company has not yet disclosed a timeline for the shutdown but has indicated that liquidation sales will begin immediately to clear inventory.
CEO Barry Litwin told corporate employees Friday in a meeting viewed by CNN that Party City is “winding down” operations immediately and that today will be their last day of employment.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, which was held on a video conference call.
“We are deeply grateful to our employees, customers, and partners for their support over the years,” the company said in a statement. “This was not an easy decision, but it became clear that closing our stores was the best course of action for our stakeholders.”
Party City’s struggles have been compounded by changing consumer habits, with many shoppers opting for online alternatives or discount retailers. Additionally, the pandemic dealt a significant blow to the party supply industry as events and gatherings were canceled or scaled down.
The closure of Party City leaves a gap in the retail market for party supplies and decorations. Analysts note that smaller, independent stores and online retailers may see an opportunity to fill the void left by the chain’s departure.
