ORLANDO, Fla. – The largest party supply store in the United States is going out of business after a 40-year run.
According to a CNN report, Party City CEO Barry Litwin told corporate employees during a video conference call on Friday that the chain is “winding down” operations immediately and Friday would be their last day of employment.
Recommended Videos
Staff were also told they would not receive severance pay, and they were told their benefits would end as the company goes out of business just days before Christmas.
[EXCLUSIVE: Become a News 6 Insider (it’s FREE) | PINIT! Share your photos]
Litwin cited that the company struggled to contend with inflation, which sent the company’s costs higher and dragged down consumer spending, the report states.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said.
In January 2023, the company filed for Chapter 11 bankruptcy protection. It then exited bankruptcy a month after Litwin was hired to lead the company in August.
Party City was able to cancel nearly $1 billion of its $1.7 billion in debt and was able to keep most of its 800-plus stores open. Despite its best efforts, the chain could not overcome $800 million in debt.
“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. “Unfortunately, it’s necessary to commence a winddown process immediately.
Party City is the largest party supply store in the United States. The company had approximately 6,400 full-time and 10,100 part-time workers as of 2024.
The chain’s closure comes as a growing number of retailers face economic challenges as they struggle to attract customers leading to closures. Big Lots is preparing to close its remaining stores with a going-out-of-business sale.
Get today’s headlines in minutes with Your Florida Daily: