Party City Bids Farewell After Four Decades of Festivities
After nearly 40 years as a cornerstone in the party supply industry, Party City has announced it will cease operations and close all U.S. stores by February 1, 2025. This decision comes just over a year after the company emerged from Chapter 11 bankruptcy in September 2023, during which it eliminated approximately $1 billion in debt.
Despite these restructuring efforts, Party City continued to face significant financial challenges. The retailer grappled with increased competition from big-box stores and e-commerce platforms, shifting consumer behaviors, and economic pressures such as high inflation and reduced consumer spending. These factors hindered the company's ability to regain profitability, ultimately leading to the decision to wind down operations.
CEO Barry Litwin, who assumed leadership four months prior to the announcement, conveyed the difficult news to employees during a video conference call. He emphasized that all possible measures were taken to avoid this outcome, stating, "We've done everything possible." Employees were informed that December 20 would be their last day of employment, with no severance pay or benefits provided.
Party City's closure reflects a broader trend of retail shutdowns amid changing consumer preferences and economic challenges. Analysts predict that up to 45,000 brick-and-mortar stores could close in the next five years, as retailers struggle to adapt to the evolving market landscape.
Founded in 1986 in East Hanover, New Jersey, Party City grew to become the largest party goods retailer in the U.S., operating over 850 locations globally at its peak. The company's stores were popular destinations for party supplies, Halloween costumes, and balloons, serving as go-to spots for celebrations of all kinds.
As Party City prepares to close its doors, it leaves behind a legacy of helping customers celebrate life's special moments. The company's departure marks the end of an era in the retail party supply industry, highlighting the challenges traditional retailers face in an increasingly digital and competitive marketplace.
Party City Announces Closure After 40 Years

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