Lifestyle

Party City Closing All Stores, Going Out of Business After 40 Years

SHERWOOD PARK, CANADA – APRIL 3: Party City logo and store, on April 3, 2024, in Sherwood Park, Strathcona County, Alberta, Canada. (Photo by Artur Widak/NurPhoto)

Party City is wrapping up their nearly 40 year dedication to partying and celebrating all different parts of life. According to several reports, the retail party chain is closing all of its stores in the United States.

“That is without question the most difficult message that I’ve ever had to deliver,” CEO Barry Litwin said to employees in a video conference. “It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome. Unfortunately, it’s necessary to commence a wind-down process immediately.”

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Litwin noted that the company had done everything they could and gave their “very best efforts” to beat back the tide of financial difficulties. He blamed the inflation that shot to highs and kept consumers from buying all those party goods to fill all those parties they were having.

The collapse of Party City was reportedly writing on the wall for most of the employees. The company recalled its development team from their annual trip with vendors and sent home effective immediately two weeks ago. According to CNN, the reports indicate the company believed the trip was a safety risk because Party City had stopped paying suppliers.

All corporate level employees were sent home on Dec. 10, with security locking the gate behind them at the company headquarters in Woodcliff Lake, New Jersey. Other employees later learned that store managers were informed all Party City stores will be closed by Feb. 1.

“We recognize the flow of communication has not been how we typically handle sensitive matters like this,” Litwin added, addressing the complaints against the company. He as joined on the call by company chief HR officer Katen McGowan, who cried several times while informing employees of their severance.

“I certainly know this is a lot to take in. My apologies,” she told employees. The decision follows the company filing for bankruptcy in 2023, and floating it again this year before deciding to close up shop.

Party City filed for Chapter 11 protection in January 2023, seeing around $1 billion in debt canceled. This was only a stopgap, clearly.

“Although Party City believes these closings are in the best interest of the company, we regret that we have had to take this step and thank you for your valued contributions and service to the company,” a letter sent to employees read.