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Party City is going out of business
Jordan Valinsky
By Emmy Abbassi and Jordan Valinsky, CNN
Updated 1:25 PM EST, Fri December 20, 2024
Party City is closing down all of its stores, ending nearly 40 years in business, CNN has learned.
CEO Barry Litwin told corporate employees Friday in a meeting viewed by CNN that Party City is “winding down” operations immediately and that today will be their last day of employment.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, which was held on a video conference call.
Party City’s “very best efforts have not been enough to overcome” its financial challenges, he added, resulting in the company’s collapse. Litwin said the company struggled to contend with inflation, which sent the company’s costs higher and dragged down consumer spending.
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said. “Unfortunately, it’s necessary to commence a winddown process immediately.”
Party City didn’t immediately respond to CNN’s request for comment.
Bankruptcy and collapse
The New Jersey-based company announced Litwin as its new CEO just four months ago. In a LinkedIn post he wrote when he was hired, he said the company’s “main priority is to strengthen our financial health, and there is work ahead of us.”
Party City exited bankruptcy a month after Litwin’s arrival. It had declared bankruptcy in January 2023. The company had struggled to pay off its $1.7 billion debt load, and it was able to cancel nearly $1 billion in debt by going bankrupt. It also managed to keep most of its more-than 800 stores open, although it closed more than 80 locations between the end of 2022 to August 2024, according to its most recent financial documents.
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https://www.cnn.com/2024/12/20/business/party-city-shut-down/index.html