Party City is going out of business, closing all stores

Party City is shuttering all its stores, ending a nearly 40-year run in business.

CNN reports Party City CEO Barry Litwin told corporate employees in a video conference call Friday that the chain of stores is “winding down” operations immediately and that today will be their last day of employment.

“That is without question the most difficult message that I’ve ever had to deliver,” Litwin reportedly said during the meeting, adding that Party City’s “very best efforts have not been enough to overcome” its financial challenges.

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Party City has 10 locations in Alabama, including three Birmingham-area stores and two in Huntsville.

Party City has battled financial woes for years. The celebration and costume retailer filed for bankruptcy in 2023 as part of a $150 million agreement to restructure its business. In a press release at the time, Brad Weston, the Chief Executive Officer of Party City Holdco Inc., cited the difficult recovery from the COVID-19 pandemic and the global supply chain crisis among challenges facing the party chain.

Over the years, the company has faced increasing competition from e-commerce platforms and online stores including Amazon, as well as seasonal pop-ups, such as Spirit Halloween, reports USA TODAY This year, Spirit Halloween announced it would expand its retail footprint into December and Christmas decor with a line of Spirit Christmas locations.

Founded in 1986, Party City has over 700 locations in North America as of August 2024, according to Party City Holdings, reports The Hill.