Party City goes bankrupt and closes all stores

Party City is closing all of its stores, ending a nearly 40-year business.

CNN reports Party City CEO Barry Litwin told company employees in a video conference call Friday that the store chain is “winding down” operations effective immediately and that today will be their last day of employment.

“This is without a doubt the most difficult message I’ve ever had to deliver,” Litwin reportedly said during the meeting, adding that Party City’s “very best efforts have not been enough to overcome” its financial challenges.

READ MORE: Large lots hold sales in all stores

The party town has 10 locations in Alabamaincluding three stores in the Birmingham area and two in Huntsville.

Party City has struggled with financial problems for years. The party and costume dealer filed for bankruptcy in 2023 as part of a $150 million deal to restructure its business. In a press release at the time, Brad Weston, CEO of Party City Holdco Inc., cited the difficult recovery from the COVID-19 pandemic and the global supply chain crisis among challenges facing the party chain.

Over the years, the company has faced increasing competition from e-commerce platforms and online stores, including Amazon, as well as seasonal pop-ups, such as Spirit Halloween, reports USA TODAY This year, Spirit Halloween announced it would expand its retail footprint into December and Christmas decor with a number of Spirit Christmas locations.

Founded in 1986, Party City has over 700 locations in North America by August 2024, according to Party City Holdings, reports The Hill.