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Party City CEO Barry Litwin stated that the company did everything possible to avoid shutting down after nearly 40 years of business. In a video conference with employees obtained by CNN, Litwin described delivering the difficult news as “the most difficult message” of his career. Having only taken on the role four months ago, Litwin assured staff that senior management had made every effort to prevent a full-scale shutdown.
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said. “Unfortunately, it’s necessary to commence a wind-down process immediately.”
The news came just days before the holiday season, with Litwin acknowledging that Party City’s “best efforts” were insufficient to overcome the company’s financial struggles.
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While Party City is closing many of its locations, the Paramus store in New Jersey will remain open until at least March 2025, depending on product availability. Employees were informed of the store closures on Thursday, and those still working are fulfilling balloon orders until New Year’s Eve, though staffing levels in the new year remain uncertain.
Party City, the largest party supply retailer in the U.S., emerged from bankruptcy in September 2023 after wiping out nearly $1 billion in debt. This restructuring effort allowed most of its 800+ U.S. stores to stay open. However, over 80 stores were closed between late 2022 and August 2024.
The company first filed for bankruptcy in January 2023, and it was delisted from the New York Stock Exchange shortly after.
Founded in 1986, Party City grew from a single store to a nationwide chain. Its website boasts of being a one-stop-shop for party supplies, many of which are exclusive to the retailer.
The retail sector has been facing significant challenges, with many companies struggling due to changing consumer habits, the rise of e-commerce, and inflationary pressures from the pandemic. Experts suggest that higher borrowing costs and consumers tightening their spending amid ongoing cost-of-living increases are contributing to the financial struggles faced by major retailers, including Party City.
