After nearly four decades as a go-to destination for party supplies, Party City has announced the closure of all its locations across the United States.
The New Jersey-based chain, once the largest party goods retailer in North America, is shutting its doors for good after facing mounting financial challenges.
CEO Confirms Party City's Nationwide Closure Amid Failed Revamp Efforts
The decision was confirmed during a video conference led by CEO Barry Litwin, where corporate employees were informed they would be laid off immediately, just days before Christmas.
According to Daily News, Litwin acknowledged that despite extensive efforts to stabilize the company, including canceling nearly $1 billion in debt through bankruptcy proceedings earlier this year, the struggles proved insurmountable.
Party City's troubles stem from a combination of factors. The rise of e-commerce giants like Amazon and Walmart posed stiff competition, while the pandemic exacerbated challenges by limiting in-store shopping and disrupting its profitable balloon business due to a helium shortage.
Efforts to revitalize the brand included hiring Litwin as CEO in August 2024, but the turnaround strategy fell short.
The chain, which boasted over 700 stores across North America, had already been downsizing, closing more than 80 locations between 2022 and 2024.
Reports suggest that some employees were notified their stores would close by February 28, 2025.
However, many workers have expressed frustration about the lack of clear communication regarding exact closure dates and severance packages.
Retail Giant Party City Shuts Down as Workers Face Immediate Layoffs
Consumers nationwide will soon lose a familiar retail option for party goods, decorations, and costumes.
Shoppers at a Chicago-area store expressed shock at the closure, with one long-time customer noting the store's popularity for its convenience and variety, Chicago Sun Times said.
Sales and discounts are currently ongoing as locations wind down operations, with select items like Christmas decorations and Valentine's Day accessories marked down.
Employees, however, face a more abrupt reality. Many corporate staffers were terminated immediately without severance pay, and store-level employees have reported feeling "in the dark" about their final workdays.
Party City is one of several retailers closing locations in 2024 due to financial instability. Chains like Big Lots, Gap, and Red Lobster have also announced significant closures as they struggle to adapt to shifting consumer preferences and rising operational costs.
As Party City exits the retail landscape, it serves as a reminder of the challenges brick-and-mortar stores face in an increasingly digital shopping era. Consumers seeking updates or additional information are encouraged to check the company's website or contact their local store while it remains operational.
