WOODCLIFF LAKE, NJ – Party City, the iconic party supplies retailer, is shutting down all its stores, marking the end of nearly four decades in business, CNN reported.
In a Friday morning meeting viewed by CNN, CEO Barry Litwin informed corporate employees that operations are “winding down immediately,” with employees’ last day of work being the same day. Litwin, who became CEO in August, expressed regret over the decision.
“It’s the most difficult message I’ve ever had to deliver,” Litwin reportedly said, adding that the company’s “very best efforts” were not enough to overcome financial struggles.
This announcement follows reports that Party City, which has more than 850 locations nationwide, was considering its second bankruptcy filing in two years. The company had emerged from Chapter 11 bankruptcy just over a year ago, reducing its debt by $1 billion and turning equity over to lenders. Despite these efforts, years of declining sales and struggles with rent left the chain unable to recover.
Under its previous CEO, Brad Weston, Party City closed several underperforming stores as part of its bankruptcy restructuring. However, financial challenges persisted, ultimately leading to the decision to cease operations.
Party City did not immediately respond to requests for comment regarding the closures.
