A sign at a Party City store in Miami, Florida, on January 18, 2023.
Joe Raedle | Getty Images
Party City announced Friday that it will close all of its stores and has begun corporate layoffs effective immediately, according to a CNN report.
CEO Barry Litwin told company employees during a meeting viewed by CNN that Party City must “immediately begin a wind-down process” and that Friday would be their last day of work for the company.
“That is without a doubt the most difficult message I have ever had to deliver,” Litwin said at the meeting, the report said.
CNN reported that the company's closure was due to ongoing financial problems at the party supplier, which filed for bankruptcy protection less than two years ago due to its inability to pay off $1.7 billion in debt.
The New Jersey-based chain emerged from bankruptcy in September 2023 in a plan that included transitioning to a private company and eliminating nearly $1 billion in debt. A majority of its 800 U.S. stores were able to remain open when the company went bankrupt.
Litwin was named CEO in August and said at the time that he saw “many opportunities to strengthen our financial performance and build an industry-leading end-to-end party experience for consumers,” according to a press release.
Prior to his appointment, he was CEO of Global Industrial Company, a distribution leader in industrial products.
Competition in party supplies and costumes has increased in recent years, including the continued rise of Spirit Halloween in and out of the spooky season. The Christmas costume chain announced in October that it would open 10 new “Spirit Christmas” stores, with some stores converting from existing Spirit Halloween locations.
Online retailers have also increased pressure on Party City's business, even as the company began offering items Amazon in 2018.
Party City representatives did not immediately respond to CNBC's request for comment on CNN's report or possible closure on the story. Read the full CNN report here.