The largest party supply retail chain in the US is closing all of its remaining stores ‘immediately’ – five days before Christmas.
Party City, which has more than 700 stores and franchises across North America, is ‘winding down’ operations, its CEO Barry Litwin told employees in a meeting today, according to CNN.
Litwin told the workers that their last day of employment was today.
‘It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,’ he said.
‘Unfortunately, it’s necessary to commence a winddown process immediately.’
For nearly four decades, Party City offered decorations, balloons and other items for birthdays and special occasions at affordable prices.
‘Party City is a global leader in the celebrations industry, delivering joy and inspiration to customers across more than 70 countries,’ the company states on its website.
The New Jersey-based corporation declared bankruptcy in January 2023 after struggling to pay off a $1.7billion debt. Party City hired Litwin as the new CEO in August and the company got out of bankruptcy a month after.
At the time, Party City had more than 800 stores, but shuttered over 80 of them from late 2022 to this August, state its latest financial records.
The chain still had $800million in debt.
On Friday, some employees received letters that their respective stores would close on February 28.
‘Although Party City believes these closings are in the best interest of the company, we regret that we have had to take this step and thank you for your valued contributions and service to the company,’ read the letter.
Meanwhile, staff who were let go today lost their benefits simultaneously and will not get severance pay.
‘That is without question the most difficult message that I’ve ever had to deliver,’ Litwin said during the conference call.
It comes two months after the second-biggest pharmacy chain in the US, Walgreens, announced it would close 1,200 of its locations as one-fourth of stores were unprofitable.
Chains are set to close the most stores this year since 2020, per Coresight Research.
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