Party City wraps up 40 years in business, will close all locations imminently

The party seems to be over for Party City, which is closing all its stores and going out of business, according to CNN. The New Jersey-based retailer is the largest party supply store in the U.S., with more than 800 locations.

After 40 years of supplying balloons, cups, candles, and tableware for everything from birthday and anniversary parties to Halloween and Super Bowl celebrations, Party City is reportedly closing its doors for good just before the year’s biggest party of all, New Year’s Eve.

As reported by CNN, CEO Barry Litwin told corporate employees on Friday that Party City is “winding down” operations immediately and Friday would be their last day of work, adding that the company’s “best efforts have not been enough to overcome” its current financial challenges.

Litwin, who took over as CEO just four months ago, said the company struggled with inflation and high costs leading to declining sales, per CNN.

Like many retailers, including Big Lots, which is also going out of business, Party City struggled with changing consumer habits as fewer Americans are shopping in-store at big retailers and are opting instead for cheaper goods online or forgoing purchases altogether. Party City also faced increased competition from Spirit Halloween and its new Christmas pop-up stores, which debuted this holiday season.

Fast Company has reached out multiple times and to multiple points of contact at Party City for comment, but did not immediately hear back.

The news follows a Bloomberg report that the company’s parent company, Party City Holdco Inc., was considering selling the business or filing for bankruptcy for the second time in less than two years. Party City had been struggling financially for years, with poor sales and about $1.8 billion in debt when it entered bankruptcy in 2023.