A sign at a Party City store in Miami, Florida, on January 18, 2023.
Joe Raedle | fake images
Party City announced Friday that it will close all of its stores and has initiated corporate layoffs effective immediately, according to a CNN report.
CEO Barry Litwin told corporate employees in a meeting seen by CNN that Party City has to “begin a liquidation process immediately” and that Friday would be his last day working for the company.
“That is without a doubt the most difficult message I have ever had to convey,” Litwin said at the meeting, according to the report.
CNN reported that the company's closure was due to continued financial challenges at the party supplies retailer, which filed for bankruptcy less than two years ago due to its inability to pay $1.7 billion in debt.
The New Jersey-based chain emerged from bankruptcy in September 2023 under a plan that included transitioning to a private company and paying off nearly $1 billion in debt. Most of its 800 U.S. stores were able to stay open when it emerged from bankruptcy.
Litwin was named CEO in August and said at the time that he saw “many opportunities to strengthen our financial performance and create a leading end-to-end celebration experience for consumers,” according to a news release.
Prior to his appointment, he was CEO of Global Industrial Company, a leader in industrial products distribution.
Competition in the costume and party supplies space has grown in recent years, including the continued rise of Spirit Halloween in and out of the spooky season. The holiday costume chain announced in October that it would open 10 new “Spirit Christmas” stores, with some of the stores becoming existing Spirit Halloween locations.
Online retailers have also added pressure to Party City's operations, even as the company began offering items in Amazon in 2018.
Party City representatives did not immediately respond to CNBC's request for comment on the CNN report or the possible closure of the story. Read CNN's full report here.
