Report says Party City will close all stores | Wilnesh News

According to reports, Party City announced on Friday that it would close all stores and immediately launch a corporate layoff plan. A report from CNN.

Chief Executive Barry Litwin told company employees in a meeting watched by CNN that Party City must “immediately begin the winding down process” and that Friday will be their last day working at the company one day.

“This is, without a doubt, the most difficult message I have ever had to deliver,” Litwin reportedly said at the meeting.

CNN reported that the closure comes as the party supplies retailer continues to face financial challenges, less than two years after it filed for bankruptcy protection due to its inability to repay $1.7 billion in debt.

The New Jersey-based chain emerged from bankruptcy in September 2023 with a plan that included transforming into a private company and canceling nearly $1 billion in debt. Most of its 800 U.S. stores remain open after emerging from bankruptcy.

Litwin was reportedly named CEO in August, saying at the time that he saw “many opportunities to enhance our financial performance and create a leading end-to-end celebration experience for consumers.” Press release.

Prior to this appointment, he served as CEO of Global Industrial Company, a leader in industrial products distribution.

Competition in the party supplies and costume space has grown in recent years, including the continued growth of “spooky Halloween” both inside and outside the spooky season. The holiday clothing chain announced in October that it would open 10 new “Spirit Christmas” stores, some of which will be converted from existing Spirit Christmas stores.

Online retailers are also adding pressure to Party City’s operations, even as the company begins to offer its merchandise online. Amazon 2018.

Representatives for Party City did not immediately respond to CNBC’s request for comment on CNN’s reporting or possible story ending. read For CNN’s full coverage, click here.