BALTIMORE, MD—Party City, the largest party supply store in the United States, is closing all of its stores, marking the end of nearly 40 years in business. CEO Barry Litwin delivered the news to corporate employees in a video conference call on Friday, according to CNN.

Litwin told employees that the company is “winding down” operations immediately, with Friday, December 20, being their last day of employment. He expressed his condolences, stating, “That is without question the most difficult message that I’ve ever had to deliver.”

The company attributed its collapse to financial challenges, despite its “very best efforts.” Litwin emphasized that the leadership did everything possible to avoid this outcome.

Party City exited bankruptcy just four months ago after struggling with a $1.7 billion debt load. The company had declared bankruptcy in January 2023. While the bankruptcy allowed the company to cancel nearly $1 billion in debt and keep most of its stores open, it still faced over $800 million in debt. This burden, coupled with rising costs and competition from e-commerce and big-box retailers, proved insurmountable.

Party City, known for its balloons, Halloween costumes, and other party supplies, employed approximately 6,400 full-time and 10,100 part-time workers as of 2021. The company’s closure joins a growing list of retail bankruptcies this year, as consumers tighten their spending amid economic anxieties.

This announcement comes as major chains are on track to close the highest number of stores in 2024 since 2020, according to Coresight Research.

This article was written with the assistance of AI and reviewed by a human editor.

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