The popular retail chain party supply filed for protection on Saturday from the Southern District of Texas. Liabilities were reported in the range of $1 billion to $10 billion in court documents. This came on the heels of a message to the employees just a day earlier, stating that there would be mass layoffs at its headquarters in Woodcliff Lake, New Jersey.
Karen McGowan, the chief people officer of the organization, emailed staff on Friday that laid-off workers would be effective immediately. During a meeting on the same day, Barry Litwin, the company’s chief executive officer, told corporate staff that it would begin “winding down” operations. Employees of some of the stores were also given notices that Party City would close all its locations by February 2025, according to the report from CNN.
Party City was founded in the mid-1980s and currently operates more than 700 company-owned and franchised retail stores in North America. The chain also runs an e-commerce site, part of the company’s future on PartyCity.com. Party City did not answer any questions concerning the bankruptcy and operational decisions.
A tough year for U.S. retailers
To open the troubling year of the retail world, Party City has again gone bankrupt and is laying people off. As reported by CoreSight Research, retail closures within the US alone crossed the 7000 mark by the end of November 2024, having increased from 69 percent over the past year.
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Almost every retail chain—the apparel, department, grocery, and specialty—has been affected by soaring operational costs, declining in-store traffic, and changes in consumer behavior—behavior towards more online shopping, as Party City’s struggles reflect. The competition increased; it led to serious supply chain challenges.
The closure will likely touch numerous communities across North America because Party City has always been largely the only place to visit in supplying for celebrations. From birthday parties to all the things to hang up for different seasons, Party City’s stock range caters to a wide array of consumer needs. However, decreased demand for such specialized retail outlets, coupled with weighty financial burdens, finally led to the party city bankruptcy filing and the decision to liquidate operations.
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While the bankruptcy of Party City is a signifier of continuous struggle for brick-and-mortar stores, it at the same time gives indication of a change in how people plan their parties and buy their supplies. What now of PartyCity.com and the company’s e-commerce presence remains hazy, leaving customers and employees unsure of what lies ahead.
