PARTY City is closing its 695 locations across the country, as the long-struggling business heads toward eventual collapse.
The party supply retailer announced just before Christmas that it would close its doors entirely in 2025.
1
Details about the impending closure are unfolding as the company declares its second bankruptcy in two years.
The New Jersey-based retailer only has a few weeks to go.
The last days
Several of the company's locations are scheduled to close on February 28, executives said in a meeting seen by CNN.
It's not clear whether every store will need to close by then, or whether others may close sooner.
It is common for businesses to close their locations early if they run out of stock before the official closing date.
But now all 695 remaining store locations are up for auction.
An auction date has not yet been set, according to property managers A&G Partners.
Party City representatives could not immediately be reached for comment and to confirm when the locations will close.
At its peak, the company had more than 800 locations, but struggled to pay off its debts.
The debts became overwhelming even after the company emerged from bankruptcy in 2023.
Corporate collapse
News of the closure broke in dramatic fashion.
According to CNN, company executives were told on December 20 that this was their last day of work.
They did not receive severance pay, and were warned that their benefits would end.
In a pre-Christmas message, CEO Barry Letwin said it was a difficult announcement.
“It's really important for you to know that we did everything we could to try to avoid this outcome,” Letwin said in the meeting watched by CNN. “Unfortunately, it is necessary to begin the liquidation process immediately.”
Letwin blamed inflation.
Inflation nation
The rising cost of living has caused problems for many businesses as their supplies become more expensive and shoppers become tired of rising prices.
While inflation has fallen significantly from its peak in 2022, people are still feeling the pinch.
A Texas retailer is closing a third of its outlets, thanks in part to rising prices.
See more chains facing mass closures in 2024.
