After a turbulent several years, Party City is reportedly planning to shutter all stores.
According to reports from CNN , Party City’s CEO Barry Litwin told corporate employees in a Friday meeting that the company is “winding down” operations immediately, and that today would be their last day of employment.
This left staff without severance pay, and with benefits ending as soon as the company goes out of business. Here’s what to know about the company’s bankruptcy, plus closures in North and South Carolina.
Why is Party City closing?
After initially filing in January 2023, the company exited bankruptcy a month after new CEO Barry Litwin’s arrival, now about four months ago, CNN reported. The company was able to cancel nearly $1 billion in debt by declaring bankruptcy. It also managed to keep most of its over 800 stores open, though over 80 locations were closed between the end of 2022 and August 2024, according to recent financial documents.
Even with that debt canceled, the chain still faced $800 million in debt, straining earnings for the year. Combined with competition from online retailers such as Amazon, and seasonal pop-ups like Spirit Halloween, the company was unable to overcome their financial problems, CNN reported.