Party City is closing all stores immediately and laying off staff after 38 years with the company, including 25 NJ locations

The party is over for another New Jersey-based retailer.

Party City is calling it quits effective immediately after 38 years in business and laying off all company staff effective Friday, December 20, according to CNN.

The popular party supplies retailer informed company employees that it is closing its remaining stores during a conference call Friday morning. During the meeting, the company also announced that its corporate employees have been laid off as of today, will not receive severance pay and will forfeit their benefits, according to the report.

From the large list of locations closing down, 25 of which are in New Jersey.

“This is without a doubt the most difficult message I’ve ever had to deliver,” Party City CEO Barry Litwin said during the conference call. “It is really important for you to know that we have done everything we could to try to avoid this outcome. Unfortunately, it is necessary to begin a liquidation process immediately.”

Litwin explained that the Woodcliff Lake-headquartered company decided to close after failing to overcome its financial struggles and combat inflation. These problems have increased the company’s overall costs, while consumer spending has decreased.

Party City originally considered filing for Chapter 11 bankruptcy in early December 2024 before ultimately shutting down, according to NJ BIZ. This would have been the second time it has filed since January 2023 as it sought to restructure, cut its $1.8 billion in debt and boost savings.

The party supplies retailer sought to cut costs throughout 2023 by closing 22 underperforming stores nationwide and closing another 35 stores in mid-May. It closed over 60 locations ahead of publication on Friday morning.

Party City was founded in East Hanover in 1986. The Party Supplies store operated approximately 850 locations in more than 70 countries.

It quickly became a go-to shopping destination for party supplies and costumes, especially during the Halloween season. Its success in party supplies helped the company become that largest retailer of party supplies in the USA, Canada and Mexico.