Party’s Over: Retail Chain Party City Announces Closure
Party City served as the party supply hub for years.
The party has officially come to an end. Retail chain Party City has announced that all of its stores are going out of business as the company files for bankruptcy.
For years, the store served as the go-to hub for all party supplies. The chains offered everything you could think of, from festive and larger-than-life balloons to a wide display of colorful candy and decorations. The store drummed up the most business during the Halloween season, as they were known for their life-like and large variety of costumes for both adults and children.
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“I can’t believe Party City is closing, look at all this business they had this past Halloween 😭. Parties are gonna be so mid bc Amazon and dollar stores are not the same quality. RIP another retail giant,” said one X, formerly known as Twitter, user. “What place more clutch than party city? you know how many times i needed something right then and party city had it? my stomach hurts,” said another.
The chain initially declared bankruptcy in January 2023. In March 2023, it was announced that Party City would be closing three locations in New York City: two in Manhattan and one in the Bronx. The closures were among 22 store closures that were taking place across the country, our sister publication amNewYork reports.
According to CBS News, the recent bankruptcy filing was made in bankruptcy court in the Southern District of Texas. The company had liabilities of between $1 billion and $10 billion. On Friday, CNN reported that CEO Barry Litwin told corporate employees in a meeting that the company was “winding down” operations. Some store employees also received letters Friday that all the chain’s stores would be closing in February, the outlet 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 wind-down process immediately.”
According to CBS, the announcement of bankruptcy came just one day after the company announced mass layoffs at its headquarters in New Jersey. On December 20th, just days before Christmas, employees received a letter detailing the separation from the company.
“We are writing to inform you that Party City Holdings Inc. (PCHI) has made the difficult decision to conduct a mass layoff at its Woodcliff Lake, New Jersey headquarters on December 20, 2024,” the letter read. “This mass layoff is expected to be permanent. The expected date of the first separation will be December 20, 2024. We regret to inform you that your position will be eliminated on December 20, 2024. As you know, PCHI does not have a job bumping system — that is, employees will not be able to displace more junior employees out of their job positions as a result of this mass layoff.”
Customers are feeling nostalgic over the store, and grieving its convenience.
“I think it’s a shame because I grew up going to Party City as a child and it’s somewhere I used to look forward to for parties. I’m thankful for the memories they gave me,” said Stephanie Campos told CBS News as she purchased balloons from the West 14th Street location in Greenwich Village. “I came to say goodbye. A lot of memories, you know, from growing up to planning socials at my fraternity. So just to come back one more time,” said Jared Barnett, another customer at the store.
Despite the company’s high sales during the Halloween season, it struggled to keep afloat. According to Macroaxis, the company reported 2.17 B of revenue. This is 69.55% lower than that of the Specialty Retail sector.
Stores will officially close their doors in February.
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