Party City’s Shocking News: Now Immediately Ceasing Operation

An insanely popular retailer that has likely helped to provide the decor for countless celebrations over the years has announced their closure.

Party City made a sudden and quite shocking announcement on Friday, December 20th, with their CEO sharing that this was 'the most difficult decision he's ever had to deliver.'The 40+ year company is winding down operations, effective immediately.

Get our free mobile app

Party City Now Ceasing Operation, End of Employment

Following 40 years in business, the ultimate place for all things party and celebration related, New Jersey based Party City, has announced they are 'winding down' operations immediately. Though initial reports indicated that corporate employees learned simultaneously that today (Friday 12/20/24) was their last day of employment, according to CNN, it seems like February 28th will be the final day of operation for all stores, with employment ceasing that date.

Company CEO Barry Litwin made the announcement on Friday the 20th, via a conference call, and also informed employees that they would not be receiving any severance pay, and their benefits would end as the Party City company goes out of business. Newsweek reports that as of 2021, the major party chain had employed 6,400 full-time and 10,100 part-time workers.

SEE ALSO: Iconic Brand Closing 500+ Locations

Financial Challenges Said To Be Root of Business Closure

Party City announced that they had filed for bankruptcy back in early 2023, with records showing that they were attempting to reduce a debt of $1.7 billion. Though they officially exited bankruptcy, it seems like the issues have not been resolved.

With over 700 stores in North America, including several that have long served the Hudson Valley, Party City CEO identified financial challenges as an issue, and that their best efforts just haven't been enough to overcome these challenges.

It's really important for you to know that we've done everything possible that we could to try to avoid this outcome. Unfortunately it's necessary to commence a wind-down process immediately.

In addition to debt, competition from places like Amazon, Walmart, Costco and Spirit Halloween, when combined with the helium shortage, has impacted operations over the years.