According to a CNN story, Party City stated on Friday that it will close all of its locations and has started corporate layoffs that will take effect immediately.
In a meeting seen by CNN, CEO Barry Litwin informed corporate staff that Party City must start a winddown process right away and that Friday would be their last day of employment.
According to the report, Litwin stated during the discussion, “That is without a doubt the most difficult message that I’ve ever had to deliver.”
According to CNN, the company’s shutdown was brought on by persistent financial difficulties at the party supplies supplier, which filed for bankruptcy protection less than two years ago due to its failure to pay off $1.7 billion in debt.
In September 2023, the New Jersey-based brand emerged from bankruptcy with a plan that included debt cancellation of around $1 billion and a move to a privately held business. As it came out of bankruptcy, most of its 800 locations in the United States managed to remain operating.
According to a press release, Litwin, who was appointed CEO in August, stated that he saw numerous chances to improve our financial performance and provide a premier end-to-end celebration experience for customers.
He was the CEO of Global Industrial Company, a leading distributor of industrial goods, before being hired.
Spirit Halloween has continued to develop both inside and outside of the spooky season, adding to the competition in the party products and costume market in recent years. In October, the holiday costume chain declared that it would establish ten additional Spirit Christmas stores, some of which would be converted from Spirit Halloween sites already in place.
Even though Party City started selling products on Amazon in 2018, online merchants have put further strain on the company’s operations.
CNBC’s request for comment on CNN’s report and possible story closures was not immediately answered by Party City representatives. Go here to read the entire CNN report.
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