The party is over for a US retailer that for decades bedazzled birthdays, anniversaries, baby showers and weddings.
Party City Holdco’s chief executive told corporate employees on Friday that the company is shuttering all stores, according to a report by CNN.
The nation’s largest retailer of party supplies has been dogged by lagging sales, putting pressure on the company to pay its rent at some 800 locations. It has at least 80 locations in California.
Also see: Big Lots liquidation looms after plan to sell to Nexus Capital falls apart
“That is without question the most difficult message that I’ve ever had to deliver,” Barry Litwin said at the meeting, which was held on a video conference call and viewed by CNN.
Corporate employees’ last day is Friday, according to CNN. No severance pay is expected.
Bloomberg reported earlier this week that the company was planning to file for another round of bankruptcy in the next two weeks. That process likely would have led to a liquidation of its stores. The New Jersey-based company last exited bankruptcy in October 2023.
Party City is one of several retailers in trouble.
The bankrupt retailer Big Lots said earlier this week that it will not complete its asset sale to Nexus Capital Management. The company is launching the sale of its stores in coming days to protect the value of its real estate, Bloomberg reported.
The Container Store is preparing to file for bankruptcy in the coming weeks after months of losses.
