ORLANDO, Fla. – Party City is going out of business and closing all of its stores after almost 40 years, CNN reported Friday morning.
In a virtual meeting viewed by CNN Friday, Party City leaders cited financial challenges as the result of the company’s collapse.
As the largest party supply store in the U.S., Party City’s disappearance is sure to have a widespread impact.
Facade with logo and sign at the Pleasanton, California location of party supply store Party City, April 16, 2018. (Photo by Smith Collection/Gado/Getty Images)
Where the party started
Party City was founded by Steve Mandell in 1986.
What started as one store in East Hanover, New Jersey, has rapidly grown throughout the years.
Data shows there are more than 700 Party City locations in the U.S., with 63 locations in Florida alone.
Party City sells a variety of party supplies and decorations, including balloons and costumes for events, such as birthdays, weddings, baby showers and graduations.
The company also offers online purchases and pick-up orders.
How did we get here?
In recent years, Party City has appeared to face a multitude of struggles, including the COVID-19 pandemic.
Like many other businesses, Party City has had to overcome supply chain issues and inflation in the recent years.
Reports show that Party City entered bankruptcy in 2023.
CNN states the company had struggled to pay off its $1.7 billion debt load and was able to cancel nearly $1 billion in debt by going bankrupt.
The business exited Chapter 11 protection, but was forced to close more than 60 of its stores.
In a meeting viewed by CNN Friday, CEO Barry Litwin reportedly told corporate employees Party City is “winding down” operations immediately.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, which was held on a video conference call, CNN says. “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 wind-down process immediately.”
Despite choosing to declare bankruptcy, financial documents show Party City still had more than $800 million in debt to overcome.
MORE STORIES:
After the after-party
Also at the Friday meeting, CNN says Litwin told employees it would be their last day with Party City.
CNN says staff were told in the meeting they would not receive severance pay and their benefits would end as the company goes out of business.
As of 2021, CNN reports Party City had about 6,400 full-time employees and 10,100 part-time employees.
Party City has not yet replied to requests for comment.
SIGN UP: Click here to sign up for FOX 35’s daily newsletter
STAY CONNECTED: Download the FOX 35 News app and FOX 35 Storm Team weather app
STAY CONNECTED:Download the FOX 35 News app for latest breaking news alerts
SUBSCRIBE: Click here to subscribe to FOX 35’s YouTube channel
STAY CONNECTED WITH FOX 35 ORLANDO:
The Source: The information in this article comes from CNN and was shared with FOX 35 News.
This post was originally published on here
