Party City is going out of business and will soon close all stores, report says

New York’s Staten Island — After nearly 40 years in business, Party City announced it would shortly close all of its stores and fired all corporate staff on Friday, CNN reported.

In a video conference call that CNN saw on Friday, the company’s CEO, Barry Litwin, stated that it was without a doubt the hardest speech he had ever had to deliver.

According to Litwin, Party City is shutting down its activities right now, and corporate employees will be leaving on December 20. CNN reports that employees were informed that their benefits would end and they would not be receiving severance money.

Even Party City’s greatest efforts haven’t been sufficient to solve its financial problems, Litwin continued. He pointed out that the business had trouble keeping up with inflation, which increased expenses and reduced consumer spending.

It’s crucial that you understand that we have taken every precaution to attempt to prevent this result, Litwin stated. Regretfully, a wind-down procedure must be started right now.

A request for comment from Party City was not immediately answered. Stores will stay open until late February, according to a worker who took calls at the New Springville location.

In January 2023, Party City declared Chapter 11 bankruptcy and arranged for a quick reorganization. Following that, the company shut down dozens of locations, including Party City at The Boulevard Shopping Center in New Dorp. The Party City in Port Richmond, which is currently covered in closing and liquidation notices, was one of the closures that continued over the past few months.

Only four months ago, the New Jersey-based corporation appointed Litwin as its new CEO. A month after his arrival, Party City declared bankruptcy, but according to financial documents, the corporation still owed over $800 million.

New Springville’s Richmond Avenue is home to the only remaining Staten Island Party City. In the past, the chain ran 823 retail locations.

Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!