Party City, once the leading supplier of festive accessories, has announced the closure of all its stores, marking the end of its nearly four-decade-long legacy.
The closure announcement by CEO Barry Litwin revealed the company's immediate winding down of operations, leaving employees without severance pay and terminating their benefits in the wake of the corporate shutdown, per CNN.
The closure of Party City, the largest party supply store in the United States, has sent shockwaves through the retail industry. The company, which boasted approximately 6,400 full-time and 10,100 part-time workers as of 2021, has been a cornerstone of the celebrations market for years.
Party City has been a prominent figure in the party goods retail industry for almost four decades. However, the company faced significant debt, and it filed for bankruptcy in January 2023 owing to a substantial debt of $1.7 billion. Despite clearing nearly $1 billion in debt and keeping approximately 800 stores operational, the remaining $800 million in debt proved insurmountable, leading to the decision to cease all operations.
A call to the Johnson City, New York for confirmation of the closure store informed us that they would not be answering any questions. Instead, we were directed to the company website, which also did not disclose any additional information. A call to the corporate office was vague, and we did not receive confirmation regarding whether the Johnson City store would be closing immediately or what would happen to the employees of the store.
The lack of clarity surrounding the closure of Party City stores, including the Johnson City location, has left employees and customers in a state of uncertainty. Newsweek reports that the CEO informed employees that today, December 20, would be their final day, with the closures taking immediate effect. CNN reports that it was corporate-level employees who were notified that they were being fired today. All news outlets report that those being fired will not receive severance or benefits.
The closure of Party City's stores will have a profound impact on the thousands of employees who will be losing their jobs. The timing of the closures, particularly during the holiday season, adds another layer of difficulty for those affected. It also raises concerns about the broader economic repercussions felt by the communities where these stores operated.
Party City's closure reflects broader trends in the retail landscape, where brick-and-mortar stores face increasing competition from e-commerce platforms. The sudden announcement of Party City's store closures has left employees, customers, and communities reeling from the uncertainty and implications of the decision.