Party City, once a leading party supply retailer, is closing all of its over 700 corporate stores nationwide after nearly 40 years in business, as announced by CEO Barry Litwin in a video conference call.
The wind-down process was deemed necessary due to insurmountable financial challenges, including $800 million in debt from its first bankruptcy in 2023, exacerbated by supply chain issues, inflation, and competition from larger retailers.
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The company had already begun shutting down over 60 stores as part of its bankruptcy strategy, and Litwin communicated that Friday would be the final day for corporate employees.
Party City’s financial difficulties were further compounded by a decline in celebrations during the COVID-19 pandemic and a helium shortage.
While the corporate stores are closing, some franchise stores and subsidiaries like the Anagram balloon business will continue operations.
This development follows Party City’s struggle to overcome its financial restructuring despite a significant reduction of $1 billion in debt in 2023.
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