Party City CEO Barry Litwin has announced the difficult decision to shut down the company after nearly 40 years in operation, acknowledging that all efforts to avoid the closure were unsuccessful. In a heartfelt video message to employees obtained by CNN, Litwin expressed the gravity of the situation, saying it was “without question the most difficult message” he had ever had to deliver.
Having only taken on the role of CEO four months ago, Litwin reassured staff that senior management had made every effort to prevent the closure. “We’ve done everything possible that we could to try to avoid this outcome,” he stated. Unfortunately, despite these best efforts, Party City will begin winding down operations immediately.
The announcement came just days before the holiday season, and Litwin revealed that the company’s financial challenges had proved insurmountable. According to reports from Party City employees, stores such as the Paramus location in New Jersey will remain open until late March 2025, depending on available inventory. However, employees were told they would continue fulfilling balloon orders until New Year’s Eve, with no guarantee of continued staffing beyond that point.
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Although Party City had exited bankruptcy in September 2023—canceling nearly $1 billion in debt and keeping the majority of its 800-plus U.S. locations open—the retailer had already closed more than 80 stores between late 2022 and August 2024. The company had initially filed for bankruptcy in January 2023 and was subsequently delisted from the New York Stock Exchange.
Founded in 1986, Party City grew into the largest party supply chain in the U.S., offering everything from balloons to party decorations, many of which were exclusive to the company. However, the ongoing challenges in the retail sector, exacerbated by rising e-commerce, changing consumer habits, and inflationary pressures, led to the company’s eventual decline.
As 2024 has seen a wave of retail closures, experts point to rising borrowing costs and consumer belt-tightening as key factors. Meanwhile, Party City’s shutdown serves as another cautionary tale in the broader struggles facing brick-and-mortar stores in the current economic climate.
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