12/21/2024
Party City, the largest party supply retailer in the U.S., is shutting down all operations after nearly 40 years in business. 🎈❌
CEO Barry Litwin announced the immediate wind-down in a meeting on December 20, leaving corporate employees without severance pay or benefits. The company had been struggling with inflation, rising costs, and declining consumer spending, compounded by $800 million in remaining debt after exiting bankruptcy in 2023.
Store closures will begin in February 2025, with all locations set to cease operations by the end of the month.
Employees expressed frustration at the lack of communication, as management had previously assured them of the company's stability. The closure follows years of competition from e-commerce platforms and big-box retailers like Amazon and Walmart, as well as seasonal rivals like Spirit Halloween.
Party City, known for its balloons and party supplies, had over 800 stores and employed approximately 16,500 people. Despite efforts to stay afloat, including leadership changes and debt restructuring, the financial challenges proved insurmountable, marking the end of an era for the iconic retailer.
