Party City logo and store in Sherwood Park, Strathcona County, Alberta, Canada, April 3. NurPhoto via Getty Images/ Hide caption
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NurPhoto via Getty Images/
The final celebration will be held at this once popular destination for all kinds of celebrations.
After nearly 40 years in business, Party City announced Saturday that it has begun “winding down” its retail and wholesale operations in preparation for the permanent closure of all its stores.
Closing sales and discounts have also begun. Party City advertises on its website that everything is on sale with up to 50% off.
Store owner Party City Holdco said: “This decision reflects our thorough efforts to find a path forward that will allow us to continue operating in an extremely difficult environment caused by, among other things, inflationary pressures on costs and consumer spending.” This decision was made after extensive efforts.” statement.
Party City did not immediately respond to NPR’s request for comment.
This comes just three months after the one-stop party shop emerged from bankruptcy with a restructuring plan. The company filed for bankruptcy in January 2023, with nearly $2 billion in debt.
The company announced Saturday that it was able to reduce its debt by nearly $1 billion, but its efforts were woefully inadequate. The company subsequently refiled for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.
“Like many other retailers, macroeconomic headwinds have recently proven too difficult for us to overcome,” Party City Holdco added.
According to the company, it has approximately 700 stores and approximately 12,000 employees. CNN reports that all stores will be closed on February 28th and employees will be laid off.
Party City used to be unrivaled in its wide selection of affordable festive goods. But over the years, competition has increased with online retailers like Walmart, Target, Spirit Halloween, and especially Amazon.
Inflation made the situation worse, as consumers had less money to spend on party supplies.
News of Party City’s demise comes just two days after Big Lots announced it would begin going-out-of-business sales at its remaining stores in an effort to stay afloat.
