Party City, the popular party supply retailer, is shuttering all of its stores nationwide after facing significant financial challenges. This decision follows the company’s recent Chapter 11 bankruptcy filing, and it marks the end of nearly 40 years of operations for the retail chain.
According to reports, Party City formally announced the closure of all its locations, which numbered around 747 prior to this decision, on December 20, 2024. CEO Barry Litwin informed employees during a corporate meeting, stating the company is 'winding down' operations, leaving many workers scrambling for new job opportunities. The closures are set to take place by February 28, 2025, as confirmed by letters sent to employees.
The path to this closure has been rocky. Party City first filed for bankruptcy back in January 2023 with significant debts and an intensive restructuring plan. Despite coming out of bankruptcy nine months later with approximately $1 billion less debt, the retailer struggled to regain its footing. Competitive pressures from other big box retailers and shifts in consumer purchasing habits have continuously undermined Party City’s profitability.
Specifically, the retailer has seen declining sales and foot traffic, aligning with broader trends affecting the retail sector where consumers are increasingly cautious about spending due to economic concerns. With rising costs of living, shoppers have become selective, often opting for less specialized stores.
Notably, across the nation, Party City has begun executing going-out-of-business sales, significantly marking down prices on party supplies, costumes, and holiday decorations. Discounts range from 10% to 50%, enticing last-minute shoppers to clear out inventory before the final closeout.
For residents and patrons of South Jersey and El Paso, the impact of Party City's closure is particularly felt. Specific store locations include: Mount Laurel, Deptford, and Turnersville in South Jersey, alongside El Paso locations on Joe Battle Blvd., Gateway Blvd., and Sunland Park Drive.
Store closing signs have been prominently displayed, with some locations reporting significant markdowns on products. Reports indicate some stores started their discounts as early as December 26, capitalizing on holiday shopping trends.
Party City’s closure also signals broader concerns within the retail sector, where going-out-of-business sales have become commonplace among national chains struggling with competition and financial sustainability. Other companies, such as Big Lots, have likewise announced closures, underlining the turbulent state of retail.
For consumers eager to take advantage of the sales, high-traffic days approaching events like New Year’s may offer some last opportunities to secure party supplies at reduced prices before the stores close permanently.
This closure serves as another reminder of the changing dynamics within the retail world, where traditional stores are increasingly challenged by the rise of online shopping and shifting customer preferences.
Party City had established itself as the go-to destination for festive events, ranging from birthdays to holidays. Its legacy of party supplies will be sorely missed by dedicated customers, especially as communities look to celebrate special moments.
With Party City winding down and facing its final days, the retail chain leaves behind mixed feelings—joy from the memories created with its products and sadness as another brick-and-mortar legacy fades away.
