Party City, the well-known party supply retailer, has announced plans to wind down its operations, following struggles exacerbated by the COVID-19 pandemic and shifts in consumer spending habits. This decision will lead to the closure of all its stores, affecting approximately 10,000 employees nationwide. The announcement came from the company’s CEO, who stated, “The decision to close our stores was one of the hardest I have ever made, but it is necessary for the survival of our company.” The company had previously filed for bankruptcy protection and attempted a restructuring plan in 2023. However, the downturn in sales and rising inflation made it increasingly difficult to maintain profitability. As a result of the wind-down, liquidation sales are expected to begin immediately, with Party City aiming to eliminate existing inventory before the final shutdown. This closure signals the end of an era for a brand that has been a staple for celebrations and events for over 35 years. Stakeholders had hoped for a turnaround, but the lingering effects of the pandemic proved too severe. The CEO added, “We appreciate the loyalty of our customers over the years who have made our celebrations special.”
Party City Announces Closure of Operations, Affecting Thousands of Employees
