Party City, a popular destination for Halloween costumes, party favors, and decorations, is shutting down nearly 700 stores nationwide as the company files for bankruptcy for the second time in less than two years. The New Jersey-based retailer will keep over 95% of its 12,000 employees to help with the closure process.
The decision comes after exhaustive efforts by the company to find a path forward in a challenging environment marked by inflationary pressures and consumer spending. Party City filed for Chapter 11 bankruptcy protection in January 2023, eliminating nearly $1 billion in debt, but “macroeconomic headwinds” have proven too severe to overcome.
Growing competition from Walmart, Target, and occasion-based pop-up stores like Spirit Halloween has intensified the pressure on retailers. Rising prices, including helium costs for party balloons, and slowing consumer demand have further exacerbated the issue.
As a result, Party City is offering going-out-of-business discounts of up to 50% on its entire assortment of goods. The company’s website currently displays these discounts, signaling the end of an era for the beloved retailer that has been a staple for over 40 years.
Source: https://abcnews.go.com/Business/wireStory/party-city-close-stores-company-files-bankruptcy-117034011