#United States #Bankruptcy #retail #Woodcliff Lake #Party City

Party City to Wind Down Operations

Party City Holdco Inc. (PCHI) has made a significant announcement regarding the future of its operations. After nearly 40 years as a leader in the celebration supply industry, the company will begin winding down its retail and wholesale operations across approximately 700 stores in the United States. This closure marks the end of an era for many who have relied on Party City for their event needs.

The decision to cease operations comes after exhaustive efforts to sustain the business amid a challenging economic landscape. Factors such as rising inflation and dwindling consumer spending have made it increasingly difficult for PCHI to maintain its previous levels of success. As a result, the company has opted for a structured approach to minimize impacts on stakeholders, leading to a voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas.

Prior to this wind down announcement, PCHI undertook a major restructuring in 2023, successfully eliminating nearly $1 billion in debt. However, despite these efforts, the adverse market conditions have proven insurmountable. The leadership at PCHI has expressed gratitude to its dedicated employees, retaining over 95% of its workforce of 12,000 during this transition period.

Going Out of Business Sales

As part of the wind down, Party City stores will conduct going out of business sales, giving customers a chance to score significant discounts on a variety of party supplies and decorations. These sales will allow shoppers to grab items for birthday celebrations, holiday decorations, and New Year’s festivities, all while supplies last. Customers are encouraged to shop early to take advantage of the best selections available.

PCHI has filed necessary motions with the court to initiate these sales and ensure commitments to its employees are upheld throughout this winding down process. In a show of support, the company's senior lenders have provisioned financial backing to enable operations during this period, pending court approval.

Further information regarding the wind down, including court documentation and the process for claims, will be made available on the PCHI case website. Suppliers with inquiries have dedicated hotlines to facilitate communication during this transition.

A Legacy of Celebration

As North America's largest party goods retailer, Party City has long been the go-to destination for all types of celebrations. The company has an extensive selection of products catered to various occasions, making it a beloved choice for customers. Its operations span over 70 countries, reinforcing its status as a global leader in the celebrations industry.

Despite the closure of its stores, Party City will continue to operate its e-commerce platform, allowing customers to shop online. The brand is inherently tied to cherished memories and special moments for millions, and it will be remembered fondly by its loyal customers.

In closing, Party City Holdco Inc. acknowledges the numerous customers who have supported them over the decades and expresses sincere appreciation. As the company embarks on this winding down journey, they aim to honor their legacy while supporting employees and customers as best as they can.

For those wishing to find their nearest Party City location for the going out of business sales, options are available via the company’s website. Customers are encouraged to explore fantastic deals while they last, as this is an opportunity to celebrate before the lights dim on Party City’s storied run.