Party’s over: Popular chain is closing after 40 years and shuttering stores across the US
Party City employs more than 16,000 people across the country
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Your support makes all the difference.Party City is closing down all stores in the U.S. after nearly 40 years in the party-planning business.
CEO Barry Litwin held a meeting early Friday to announce the business will be “winding down” immediately and will close its 800 stores across the country, CNN reports. Today is thethe staff’s last day of employment. The company won’t give out severance pay and benefits will end as the company closes, Litwin said.
With roughly 6,400 full-time and 10,100 part-time workers employed, Party City is leaving thousands suddenly without jobs.
Friday’s meeting wasn’t the first sign that something was off. Corporate staff were sent home on December 10, and on December 11 company officials said staff needed to provide at least a day’s notice to re-enter, CNN reports.
The company’s product development team was also pulled from their yearly trip with vendors two weeks ago and told to return home immediately, according to a former employee who spoke to CNN. The team was informed company leaders thought the trip could be unsafe because they had stopped paying its suppliers.
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said, according to CNN. “Unfortunately, it’s necessary to commence a winddown process immediately.”
“We recognize the flow of communication has not been how we typically handle sensitive matters like this,” he added.
Karen McGowan, the company’s chief human resources officer, cried as she spoke at Friday’s meeting, CNN reports.
“I certainly know this is a lot to take in,” McGowan said. “My apologies.”
The company declared bankruptcy in January 2023, eliminating more than half of its $1.7 billion in debt. The company closed just 80 stores between 2022 and today, CNN reports.
The Independent has contacted Party City for comment.
American retail stores of all kinds have been closing their doors this year.
In October, major baby retailer Buybuy Baby announced it is closing all locations by 2025 as the brand transitions to online-only.
Dollar Tree also announced earlier this year that it planned to close more than 600 Family Dollar locations by the end of the year. The discount goods store cited inflation and an increase in shoplifting losses for the closures.
Stop & Shop, a New England grocery chain, closed “underperforming” locations this year. Big Lots, a discount retailer, announced in August it will shutter more than 300 stores.
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