Party City to Close All U.S. Stores

Party City is closing all its U.S. stores after nearly 40 years in business due to insurmountable financial challenges, including significant debt and inflation. CEO Barry Litwin announced the immediate shutdown, leaving employees without severance pay or benefits, as reported by CNN and other sources. Although Party City exited its first bankruptcy in September 2023 after restructuring and canceling $1 billion in debt, it still struggled with $800 million in remaining debt. The closures will impact over 800 stores, but Canadian locations, owned separately by Canadian Tire, will remain open. Factors such as increased competition from online retailers and pop-up stores, supply chain issues, and a helium shortage contributed to the company's downfall. This decision marks the end of Party City's role as a leading party supply retailer in the U.S.