Party City, the largest party supply store chain in the United States, is closing all its stores, marking the end of nearly four decades in business, an announcement made Friday said.
Party City’s corporate employees were informed via a video conference call viewed by CNN that it would be their final day of employment on Friday, just days before Christmas.
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CEO Barry Litwin announced the company would immediately begin winding down operations, citing financial challenges as the primary reason for the retailer’s collapse, according to reports.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, which was held on a video conference call, CNN reported. “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 winddown process immediately.”
Related: Party City, amid rising prices, seeks bankruptcy protection (2023)
The company initially filed for bankruptcy in January of last year, a move intended to alleviate its financial burdens. The restructuring plan eliminated close to $1 billion in debt, dissolved its stock, and allowed most of its 800 stores to remain open.
Despite these efforts, Party City remained saddled with $800 million in debt, which continued to strain its earnings throughout this year.
Party City’s shutdown underscores a growing trend among retailers struggling to navigate changing consumer habits and economic pressures. As shoppers cut back on discretionary spending, competition from big-box retailers like Amazon and Walmart, and pop-up concepts like Spirit Halloween has accelerated the demise of smaller chains.
Party City is the largest party supply store in the United States. The company had approximately 6,400 full-time and 10,100 part-time workers as of 2021.