Party City files bankruptcy and announces all stores will close
Party City, a network of 700 party-goods stores across the United States, said on Saturday that it had filed for Chapter 11 bankruptcy in the Southern District of Texas. The company's insolvency will result in the closure of all of its sites.
The business complained about "an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors."
Party City staff got notices on Friday that the locations will close on February 28. Meanwhile, Party City stated in a statement that its around 700 locations will remain open and provide "going out of business" specials while supplies last. The corporation indicated that around 95% of its 12,000 workers will be retained.
"After working tirelessly to find a path forward that would allow us to continue operating, we will unfortunately be winding down our business, including the eventual closure of our stores," Party City said in a letter to investors. "The environment has continued to be extremely challenging for us and many other retailers, particularly given inflationary pressures on costs and consumer spending, and while we worked hard to navigate these headwinds, our very best efforts were ultimately not enough to overcome these challenges."
Prior to liquidating all of its sites, Party City is offering up to 50% off its merchandise.
“It has been a true pleasure to be a part of your most special moments over the years. And, in the coming weeks, we hope you stop by to say goodbye and pick up your favorite items, whether you’re organizing a big celebration now or planning ahead for milestone moments to come,” according to a company statement in the filing.
Party City Holdco Inc. entered bankruptcy in January 2023 after struggling to repay its almost $1.7 billion debt. According to its most current financial papers, it was finally able to save about $1 billion by closing more than 80 facilities between the end of 2022 and August 2024. Party City chose Litwin as CEO in August and emerged from bankruptcy a month later.
