Party City, the once-thriving retail giant known for its party supplies, is closing its doors after nearly 40 years in business. CEO Barry Litwin announced during a video conference on Friday that the company is “winding down” operations immediately. Corporate employees were informed that the meeting marked their final day at work, according to CNN.
“This is without question the most difficult message I’ve ever had to deliver,” Litwin said during the emotional meeting. He explained that despite the company’s best efforts to address its financial woes, they were unable to overcome the challenges that ultimately led to this decision.
Litwin assured employees that every possible measure had been taken to avoid shutting down, “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,” he added.
Employees across Party City’s retail stores received a formal letter confirming that all locations would shut down by 28 February 2025, with all staff contracts terminated, as per the The Mirror US.
The letter acknowledged the difficult decision, stating, “Although Party City believes these closings are in the best interest of the company, we regret that we have had to take this step and thank you for your valued contributions and service to the company.”
He also shared about his decision on a LinkedIn post, “main priority is to strengthen our financial health, and there is work ahead of us.”
Litwin, who joined as CEO just four months ago, had previously expressed optimism about strengthening the company’s financial health. However, the New Jersey-based retailer, which exited bankruptcy in January 2023, struggled to manage its remaining $800 million debt.
In 2022, the company had already closed 80 stores as part of its restructuring, which saw $1 billion of its $1.8 billion debt wiped out. Despite these efforts, Party City’s financial troubles proved insurmountable.
A former corporate employee revealed that staff had been caught off guard by the closure. The product development team was abruptly recalled from an annual trip two weeks prior, and all corporate employees were sent home on 10 December when office doors were locked without warning.
With this announcement, thousands of Party City workers are now facing unemployment, marking a grim end to what was once a celebrated retail success story.