Party City, the well-known chain of stores based in New Jersey, United States, has confirmed that it will close all of its stores after more than four decades of operation in the market.
Although Party City has been a leading name in the party supplies sector for many years, its closure marks a significant shift in the retail industry in the United States.
The company’s CEO, Barry Litwin, informed corporate employees last Friday that the company had decided to immediately cease operations.
According to the announcement, this Friday will be the last day of work for Party City’s employees. This drastic measure comes amidst a series of financial challenges the company has faced in recent years, leading the chain to make this difficult decision.
LEE TAMBIÉN McDonald’s menu 2025: these are the new meals
Why is Party City closing?
Barry Litwin, the CEO, communicated to his employees that despite the company’s most intense efforts, its financial problems have been insurmountable. He attributed this difficult situation to persistently high inflation, which has increased operational costs and reduced consumers’ purchasing power, discouraging them from spending on non-essential products.
On December 10, all corporate employees of The company were sent home, and security proceeded to close the main doors of the company’s headquarters in Woodcliff Lake, New Jersey. The decision to close the headquarters came amid growing financial uncertainty.
The company had considered filing for bankruptcy for the second time in early December after previously filing for bankruptcy last year due to difficulty in meeting rent payments at several of its stores.
This closure of Party City adds to a series of bankruptcies that have shaken the retail sector in 2024. Large chains such as Big Lots have begun similar processes, reflecting a market trend: consumers are adjusting their spending and prioritizing essential products in light of the rising cost of living. It is expected that 2024 could become the year with the most store closures since 2020, due to the economic crisis affecting retailers.
Which stores will Party City close?
So far, only the headquarters in New Jersey, United States has closed; however, store managers have been informed that all Party City locations will close starting February 1, 2025.
When did Party City file for bankruptcy?
The company filed for protection under Chapter 11 of the bankruptcy code for the first time in January of last year, securing $150 million in debtor-in-possession financing to support its operations. At the time, the company reported estimated assets and liabilities between $1 billion and $10 billion.
In September, the chain reached an agreement to emerge from bankruptcy, which included the cancellation of approximately one billion dollars in debt and the transfer of all its equity value to the company’s lenders.
What does Party City sell?
Party City is a store known for selling balloons and various party supplies.
How many locations does Party City have?
The company currently has more than 850 locations worldwide.
