Party City Closing Down
Party City, the leading party supplies retailer in the U.S., has announced it is going out of business after nearly 40 years of operation.
The company filed for Chapter 11 bankruptcy protection on December 21, 2024, marking its second bankruptcy filing in two years.
The decision to wind down operations comes after prolonged financial struggles, including high inflation, declining consumer spending, and challenges stemming from the COVID-19 pandemic. Despite efforts to restructure and reduce debt—having previously exited bankruptcy in September 2023 with a plan that canceled about $1 billion in debt—the company could not achieve sustainable profitability.
Party City plans to close all its approximately 700 stores nationwide. During the going-out-of-business sales, stores will remain open, and the company aims to retain most of its 12,000 employees to assist during this period.
This closure reflects broader challenges in the retail sector, with many brick-and-mortar stores facing difficulties due to changing consumer behaviors, increased competition from e-commerce, and economic pressures. Party City's shutdown adds to the list of retailers that have struggled to adapt to the evolving market landscape.
