In a heartbreaking announcement, Party City has revealed its decision to close all of its stores, marking the end of nearly 40 years in business.
CEO Barry Litwin shared the devastating news during a video conference call with corporate employees on Friday.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said, his voice breaking, as he announced that today would be their last day of employment.
“Party City’s very best efforts have not been enough to overcome our financial challenges,” Litwin admitted during the meeting. “It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome. Unfortunately, it’s necessary to commence a winddown process immediately.”
The New Jersey-based company named Litwin its new CEO just four months ago. In a LinkedIn post when he was hired, he stated that the company’s “main priority is to strengthen our financial health, and there is work ahead of us.” However, the challenges proved insurmountable. Party City declared bankruptcy in January 2023, struggling with a $1.7 billion debt load. Going bankrupt allowed it to cancel nearly $1 billion in debt and keep most of its more than 800 stores open. Yet, the company closed over 80 locations from the end of 2022 to August 2024, according to its most recent financial documents.
“It’s a heartbreaking moment for all of us,” Litwin continued, his voice choked with emotion. “Party City has been a part of so many lives, creating memories at birthdays, Halloween, and celebrations of all kinds. To see it come to an end is incredibly difficult for me personally and professionally.”
The company’s struggles were compounded by intense competition from e-commerce sites, pop-up concepts like Spirit Halloween, and big-box retailers such as Amazon, Walmart, and Costco. The challenges of the pandemic, coupled with a helium shortage, also significantly impacted its balloon business. As Party City winds down its operations, it marks the end of an era for the largest party supply store in the United States.
