The largest party supply retail chain in the US is closing all of its remaining stores ‘immediately’ – five days before Christmas. Party City, which has more than 700 stores and franchises across North America, is ‘winding down’ operations, its CEO Barry Litwin told employees in a meeting today, according to CNN.
![[Mandatory Credit: Photo by John Angelillo/UPI/Shutterstock (15025400c) Pedestrians walk by a Party City retail store in New York City on Friday, December 20, 2024. Party City is closing down all of its stores after almost 40 years in business. Party City Going Out of Business, New York, United States - 20 Dec 2024]](https://metro.co.uk/wp-content/uploads/2024/12/SEI_233877766-4bb2.jpg?quality=90&strip=all&w=646)
Litwin told the workers that their last day of employment was today. ‘It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,’ he said. ‘Unfortunately, it’s necessary to commence a winddown process immediately.’.
![[DALY CITY, CALIFORNIA - DECEMBER 20: A view of a Party City store on December 20, 2024 in Daly City, California. Party City announced plans to close all of its stores effective immediately after nearly 40 years in business. (Photo by Justin Sullivan/Getty Images)]](https://metro.co.uk/wp-content/uploads/2024/12/SEI_233876452-fb6e.jpg?quality=90&strip=all&w=646)
For nearly four decades, Party City offered decorations, balloons and other items for birthdays and special occasions at affordable prices. ‘Party City is a global leader in the celebrations industry, delivering joy and inspiration to customers across more than 70 countries,’ the company states on its website.
![[Mandatory Credit: Photo by Mark Hertzberg/ZUMA Press Wire/Shutterstock (15025409o) Party City, once the nation's largest retail outlet for balloons and other party favors, announced Friday December 20, 2024 that is closing all its stores after almost 40 years in business. The company went into bankruptcy in January 2023. Employees were told they would not get severance pay. The store in Racine, Wisconsin, shown shortly after the announcement, will close January 18. Party City Closing, Racine, Wisconsin, USA - 20 Dec 2024]](https://metro.co.uk/wp-content/uploads/2024/12/SEI_233879114-f9b0.jpg?quality=90&strip=all&w=646)
The New Jersey-based corporation declared bankruptcy in January 2023 after struggling to pay off a $1.7billion debt. Party City hired Litwin as the new CEO in August and the company got out of bankruptcy a month after. At the time, Party City had more than 800 stores, but shuttered over 80 of them from late 2022 to this August, state its latest financial records.
The chain still had $800million in debt. On Friday, some employees received letters that their respective stores would close on February 28. ‘Although Party City believes these closings are in the best interest of the company, we regret that we have had to take this step and thank you for your valued contributions and service to the company,’ read the letter.
