Party City closing down all stores

Party City Holdco, popularly known as Party City, is closing all stores and winding down operations immediately.

With the closing down of Party City stores, the company is ending nearly 40 years in business, reports CNN.

Steve Mandell in East Hanover, New Jersey, founded the defunct American chain of party stores in 1986.

The company operates over 850 outlets in over 70 countries around the world. The stores are famous under the Party City, Halloween City, Toy City, Factory Card and Party Outlet brands.

Party City Chief Executive Officer (CEO) Barry Litwin conveyed the matter to his corporate employees during a meeting on Friday. Barry said today[ Friday] is going to be their last day of service as Party City is “winding down” operations soon.

It is a popular party, balloon supplies store with hundreds of locations across the US. Of them, over two dozen stores are in the Chicago area.

Litwin said during the meeting that it is important for you to know that the company management has done everything possible. The party could try to avoid this outcome

It is necessary to start a winddown process immediately.

Litwin said at the meeting it is without question the most difficult message that they have ever had to deliver.

He said the company’s collapse came due to its financial challenges although its very best efforts have not been enough to overcome.

Litwin said the company fought to resist inflation. This problem sent the company’s costs higher and pulled down consumer spending.

After struggling with rising prices and a pullback in customer spending, the party supply chain filed for Chapter 11 bankruptcy protection in 2023. As a result, the company had planned to close 22 stores.