Party City store sign on January 18, 2023 in Miami, Florida.
Joe Radle | Getty Images
Party City announced on Friday that it would close all of its stores and begin laying off employees effective immediately, CNN reported.
Chief Executive Officer Barry Litwin told company employees in a meeting viewed by CNN that Party City must “immediately begin a downsizing process” and that Friday would be their last day at the company. spoke.
“This is without a doubt the most difficult message I have ever had to convey,” Litwin reportedly said at the meeting.
According to a CNN report, the company’s closure is due to the party supply retailer’s ongoing financial problems, less than two years ago when it filed for bankruptcy protection due to an inability to repay $1.7 billion in debt.
The New Jersey-based chain emerged from bankruptcy in September 2023 with a plan that included becoming a private company and canceling nearly $1 billion in debt. The company emerged from bankruptcy and was able to keep most of its 800 stores in the United States open.
Litwin was appointed CEO in August and believed at the time that there were “many opportunities to strengthen our financial performance and build a first-class end-to-end celebratory experience for consumers,” according to a press release. said.
Prior to this role, he served as CEO of Global Industrial Company, a leader in industrial products distribution.
Competition in the party supplies and costumes sector has intensified in recent years, with spirit Halloweens continuing to rise both during and outside of the spooky season. The holiday costume chain announced in October that it would open 10 new “Spirit Christmas” stores, with some stores converting from existing Spirit Halloween stores.
Online retailers are also putting pressure on Party City’s operations, even though Party City has started offering its products online. Amazon In 2018.
Representatives for Party City did not immediately respond to CNBC’s request for comment about CNN’s report or the possible closure of the story. Read the full CNN report here.