Party City announces closure of all stores after nearly 40 years

Celebration Metropolis, the most important occasion provide retailer chain in the US, is closing all its shops, marking the top of practically 4 many years in enterprise, an announcement made Friday stated.

Celebration Metropolis’s company workers have been informed via a video conference call seen by CNN that it could be their ultimate day of employment on Friday, simply days earlier than Christmas.

CEO Barry Litwin introduced the corporate would instantly start winding down operations, citing monetary challenges as the first cause for the retailer’s collapse, according to reports.

“That’s with out query probably the most troublesome message that I’ve ever needed to ship,” Litwin stated on the assembly, which was held on a video convention name, CNN reported. “It’s actually essential so that you can know that we’ve carried out all the pieces doable that we may to attempt to keep away from this consequence,” Litwin stated. “Sadly, it’s essential to start a winddown course of instantly.”

Associated: Party City, amid rising prices, seeks bankruptcy protection (2023)

The corporate initially filed for bankruptcy in January of final yr, a transfer supposed to alleviate its monetary burdens. The restructuring plan eradicated near $1 billion in debt, dissolved its inventory, and allowed most of its 800 shops to stay open.

Regardless of these efforts, Celebration Metropolis remained saddled with $800 million in debt, which continued to pressure its earnings all through this yr.

Celebration Metropolis’s shutdown underscores a rising development amongst retailers struggling to navigate altering shopper habits and financial pressures. As buyers reduce on discretionary spending, competitors from big-box retailers like Amazon and Walmart, and pop-up ideas like Spirit Halloween has accelerated the demise of smaller chains.

Celebration Metropolis is the most important occasion provide retailer in the US. The corporate had roughly 6,400 full-time and 10,100 part-time employees as of 2021.