A sign at a Party City store on January 18, 2023 in Miami, Florida.
Joe Reddell | Getty Images
According to reports, Party City announced on Friday that it would close all stores and immediately launch a corporate layoff plan. A report from CNN.
Chief Executive Barry Litwin told company employees in a meeting watched by CNN that Party City must “immediately begin the winding down process” and Friday will be their last day at the company one day.
“This is, without a doubt, the most difficult message I have ever had to deliver,” Litwin reportedly said at the meeting.
CNN reported that the closure comes as the party supplies retailer continues to face financial challenges, less than two years after it filed for bankruptcy protection due to its inability to repay $1.7 billion in debt.
The New Jersey-based chain emerged from bankruptcy in September 2023 with a plan that included transforming into a private company and canceling nearly $1 billion in debt. Most of its 800 U.S. stores remain open after emerging from bankruptcy.
Litwin was reportedly named CEO in August, saying at the time that he saw “many opportunities to enhance our financial performance and create a leading end-to-end celebration experience for consumers.” Press release.
Prior to this appointment, he served as CEO of Global Industrial Company, a leader in industrial products distribution.
Competition in the party supplies and costume space has grown in recent years, including “Spirit Halloween” Continue to rise Within and beyond the spooky season. The holiday clothing chain announced in October it will open 10 new “Spirit Christmas” stores, some of which are converted from existing Spirit Winter locations.
Online retailers have also put pressure on Party City’s operations, even though the company has just begun operations provide items exist Amazon 2018.
Representatives for Party City did not immediately respond to CNBC’s request for comment on CNN’s reporting or possible ending of the story. read For CNN’s full coverage, click here.
