December 20th 2024.
After almost four decades in business, Party City, the nation's largest retail outlet for party supplies, has announced that it will be closing all of its stores. This news came as a shock to many, as the company has been a staple for balloons, decorations, and other party favors for years. The closure was confirmed on Friday, just five days before Christmas, and is said to take effect immediately.
According to CNN, Party City's CEO, Barry Litwin, held a meeting with employees today to deliver the difficult news. He shared that the company's more than 700 stores and franchises across North America will be "winding down" their operations. Unfortunately, for the workers, today was their last day of employment. Litwin expressed his sadness in having to deliver this message and assured the employees that they had done everything in their power to avoid this outcome.
The company has been a global leader in the celebrations industry, bringing joy and inspiration to customers in over 70 countries. On its website, Party City prides itself on offering affordable prices for birthdays and special occasions. However, with over $1.7 billion in debt, the New Jersey-based corporation filed for bankruptcy in January 2023. After hiring Litwin as the new CEO in August and emerging from bankruptcy a month later, the company still struggled to stay afloat.
In an effort to cut costs, Party City closed over 80 stores from late 2022 to this August. However, this was not enough to overcome the $800 million debt that the chain still had. As a result, some employees received letters on Friday stating that their respective stores would officially close on February 28. Litwin expressed his regret in having to take this step and thanked all employees for their contributions and service to the company.
Sadly, the closure also means that many employees lost their benefits and will not receive severance pay. Litwin acknowledged that delivering this message was the most difficult thing he has ever had to do. This news comes just two months after the second-largest pharmacy chain in the US, Walgreens, announced it would close 1,200 locations due to unprofitability. It is reported that this year, more chain stores will close than in any year since 2020, according to Coresight Research.
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