All Party City Stores Are Closing, Report States

It's the end of an era, as Party City is closing all of its stores, according to a new report. The move happens roughly 40 years after the party-happy business got started. Party City is 'Winding Down,' Per Report Per a report from CNN, CEO Barry Litwin, who took over the business in August of this year, told corporate employees on Friday, December 20, that the business is "winding down" operations immediately. “That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, per CNN, which took place on a video conference call. Litwin also said that Party City has given its "very best efforts have not been enough to overcome" its financial problems, but that the operation just couldn't overcome the hurdle. "Litwin said the company struggled to contend with inflation, which sent the company’s costs higher and dragged down consumer spending," CNN stated. According to the report, some of Party City's employees also got letter stating the business would close down stores 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," the letter noted. Party City was able to exit bankruptcy in September after filing for protection in January 2023, according to CNBC. In addition, CNBC notes that "competition in the party goods and costume space has grown in recent years" because of multiple factors, including the rise of Spirit Halloween, Spirit Christmas and online retailers.