US Party City announced it will close its stores after 40 years in business
WOODCLIFF LAKE, NEW JERSEY (Times Media Service) — Party City, the beloved retailer known for supplying generations of Southern Californians with party essentials, announced it will close all its stores across the U.S. after nearly 40 years in business. CEO Barry Litwin broke the news to employees via a video conference, explaining that despite extensive efforts, the company was unable to overcome its financial struggles.
The closure marks the end of an era for Party City, which was a go-to destination for Southern Californians planning everything from backyard birthday parties to holiday celebrations. Like many retailers, the company faced growing competition from big-box stores and online platforms, challenges that worsened during the COVID-19 pandemic. The lockdowns and reduced gatherings during the pandemic led to significant drops in sales.
After filing for Chapter 11 bankruptcy in January 2023, Party City restructured and canceled nearly $1 billion in debt, securing $150 million in financing to keep stores running. At the time, it planned to continue operations at most of its 800 U.S. locations. However, the company couldn’t sustain profitability. Over the past two years, more than 80 stores shuttered, and in December 2024, reports surfaced that Party City was preparing for another bankruptcy filing due to ongoing cash flow problems.
On December 21, 2024, the company filed for Chapter 11 bankruptcy again, citing assets and liabilities between $1 billion and $10 billion. Over 10,000 creditors are involved, and the closure will impact thousands of employees, including many in Southern California.
Party City has announced it will fulfill orders through New Year’s Eve but has not confirmed staffing plans for 2025. Its Canadian locations, owned by Canadian Tire, will remain open and are unaffected by the U.S. closures.
The announcement is a sobering reflection of the challenges facing the retail sector. Analysts predict that up to 45,000 brick-and-mortar stores could close nationwide in the next five years as consumer habits continue to shift toward online shopping.
For Southern Californians who have relied on Party City for everything from festive balloons to Halloween costumes, the news is bittersweet, marking the loss of a retail institution that brought joy to countless celebrations.
Joel Patterson / Business Writer (Times Media Service)
jpatterson@timesmediaservice.com
