Party City, a longtime retailer and go-to source for many of party supplies, is closing all its stores and going out of business, according to a report from CNN.
Company CEO Barry Litwin told corporates employees in a meeting Friday the company is "winding down" operations and and today was their last day working there, CNN reported.
The retailer had more than 850 locations in the United States, according to its website, and had been in business for more than 30 years.
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said, according to the report. “Unfortunately, it’s necessary to commence a winddown process immediately.”
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Litwin just joined the company in August and at the time said, "I see many opportunities to strengthen our financial performance and build a leading end-to-end celebration experience for consumers."
The company, headquarted in Woodcliff Lake, New Jersey, was known for its party supplies, balloons, holiday decorations and Halloween costumes. Halloween was known to be the retailer's most-important season.
NBC New York has reached out to Party City for comment. The retailer has not posted about the closings on it social media channels and did not respond to requests for comment.
Business
While Party City employees at a Manhattan store would not comment to an NBC New York crew, one customer said when she asked why an item was $4 at the register instead of the expected $30, she was told by an employee that it's offering discounts because the store was closing.
The New Jersey Department of Labor & Workforce Development said it had not received any official WARN labor notices as if early Friday afternoon from the company.
It's not clear when the stores will be closing and when its online business might be shutting down.
Party City had filed for Chapter 11 bankruptcy protection in January 2023, but continued to operate its brick-and-mortar locations as well as its online business after the filing. The company planned to close more than 20 stores as part of the process to restructure its debt.
“They’re competing against Walmart, and Target and Amazon and the dollar stores and grocery stores,” Joe Feldman, an analyst at Telsey Advisory Group who had covered Party City since its IPO in 2015, told CNBC at the time.
The retailer was able to restructure and emerge from Chapter 11 in Oct. 2023.
“We are thrilled to celebrate the successful conclusion of our restructuring and the bright future that lies ahead
for PCHI,” the then-CEO of Party City Brad Weston said in 2023. “We have exited the process on stronger financial footing, and I am incredibly appreciative of the tremendous efforts made by our team to get us to where we are today."
Bloomberg reported Wednesday Party City was exploring the possibility of a second bankruptcy or liquidation amid continued financial challenges.
Party City opened a brand-new headquarters building in New Jersey in 2022.
