Party City abruptly shutting down all stores: What we know

What’s New

Party City is closing all of its stores, according to a corporate meeting that CNN first reported on.

Newsweek reached out to Party City’s press team for comment via email.

Why It Matters

Party City has over 700 stores across North American and has been in business for nearly 40 years. CEO Barry Litwin told corporate employees on Friday that Party City would be “winding down” operations immediately. Friday is the employees’ last day.

“That is, without question, the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, which was conducted over video conference.

Litwin pointed to financial challenges, adding that the company’s “very best efforts have not been enough to overcome” them.

“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said. “Unfortunately, it’s necessary to commence a wind-down process immediately.”

When Did Party City File For Bankruptcy?

A judge signed off on Party City’s reorganization plans in September of 2023, which brought the chain out of bankruptcy.

Party City filed for bankruptcy in January of 2023, when it had $1.7 billion in debt. The reorganization plan approved in September canceled nearly $1 billion of debt and closed some stores.

But Party City was still $800 million in debt after that.

What To Know

In a press release from the end of October, Party City called itself “a global leader in celebrations industry” and “North America’s largest party goods retailer.”

Party City has over 700 company-owned and franchise store locations throughout North America. As of 2021, the chain employed 6,400 full-time and 10,100 part-time workers.

In a filing from August, Party City’s financial adviser, Moelis & Co, estimated that the company was worth between $450 million and $775 million.

The company also operates Amscan, which designs, manufactures and distributes celebration products like costumes, decor and tableware.

Litwin was hired as Party City’s new CEO four months ago, according to a LinkedIn post he wrote at the time.

“Our main priority is to strengthen our financial health, and there is work ahead of us,” Litwin said in the post. “However, our success is rooted in our people and culture.”

Litwin has not posted about the closing. His last LinkedIn post was a month ago, in which he touted “Party City’s impressive traffic growth during the crucial Halloween drive period.”

He also still lists himself as the CEO of Party City, as of the time this story was published.

Party City has not posted to its X (formerly Twitter) account since October 26, 2023.

How Many Party City Locations Are There?

According to a company press release from October, Party City has over 700 stores in North America.

When Will The Closures Happen?

The CEO told employees December 20 is their last day. The closures are effective immediately.

When is Big Lots closing?

The national retailer Big Lots also announced that it is going out of business.

Newsweek reached out to Big Lots’ press team over email for comment.

The company put out a press release December 19 stating saying it is “preparing to commence going out of business sales at all remaining Big Lots store locations.”

The news release said Big Lots “does not anticipate completing its previously announced asset purchase agreement with Nexus Capital Management.”

The sale will start in the coming days and the company said its goal is to complete a sale by early January.

“We all have worked extremely hard and have taken every step to complete a going concern sale,” CEO Bruce Thorn said in the press release. “While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”

What People Are Saying

Bruce Millard, senior vice president and chief marketing officer at Big Lots, on LinkedIn: “Yesterday was a tough day at Big Lots. We’re starting the process to close all remaining stores. While the news is tough to take, it’s not due to a lack of talent in the marketers and merchants on the team. This is one of the strongest groups I’ve ever had the opportunity to work with!”

Griffin Gold, senior assistant store manager at Spencer’s and former Big Lots employee, on LinkedIn: “I found out about Big Lots closing while at my former store today. While I worked there, this store had a strong sense of community. It’s terrible that this is happening less than a week before chrismas. I can’t even imagine how employees are feeling right now and the stress of losing a job during this time of the year, not to mention in this particular job market.”

Betsy Petrovic, marketing manager at CQL, on LinkedIn: “Not surprising, but still very sad – and a sign of the increased competition from other retailers and eCommerce. Party City announced today that all employees are terminated and stores are closing. This follows on the heels of BigLots announcing its closure on Thursday. I truly pray for our economy and for those struggling with being out of work, especially during right before the holidays.”

What Happens Next

Party City will close effective immediately, and Big Lots will begin holding its going out of business sales at all locations.