After nearly four decades of supplying celebrations, the confetti has finally settled for Party City. The company announced this week that it will box up its stores for good, according to CNN.
On Dec. 20, Party City CEO Barry Litwin informed corporate employees via video conference that the company was closing and that the day would be their last day of work. The employees were also informed that severance pay would not be provided. On the same day as the meeting, some employees received letters notifying them that stores would close on Feb. 28, 2025, after which staff would be terminated.
TODAY.com has reached out to Party City for comment but did not immediately hear back.
CNN viewed the announcement to employees and reports that Litwin emphasized towards the end of the meeting that the news was “without question the most difficult message that I’ve ever had to deliver.”
Litwin cited the party suppliers’ ongoing financial challenges as the reason for the closure, saying the company’s “very best efforts have not been enough to overcome.”
The CEO, who was appointed four months ago, cited inflation driving down consumer spending as the company’s greatest challenge.
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin added. “Unfortunately, it’s necessary to commence a winddown process immediately.”
The retailer, which is based out of New Jersey, exited bankruptcy one month after Litwin’s arrival after filing in January 2023 to address $1.7 billion in debt.
The report underscored employee reaction, noting that many expressed “fury” over the lack of transparency in internal Microsoft Teams chats.
