Retail giant Party City has suddenly announced the closure of all of its stores, marking the final chapter of the company's nearly 40-year run.
Party City CEO and President Barry Litwin reportedly told staff members last Friday that the company would be shutting down immediately and that today would be their last day of work.
Employees were also informed that they would not be receiving severance pay and that their benefits would end.
The surprising move came just a day before Party City filed for Chapter 11 bankruptcy for the second time in two years due to dwindling sales and harsh competition from big-box retailers like Amazon and Walmart.
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In a letter on the company's website, Party City informed customers of the shutdown, citing rapidly inflating operating costs.
The company also took the time to announce its final closing sale, inviting consumers to stock up on party decorations.
"It has been a true pleasure to be a part of your most special moments over the years. And, in the coming weeks, we hope you stop by to say goodbye and pick up your favorite items, whether you're organizing a big celebration now or planning ahead for milestone moments to come."
Party City previously filed for bankruptcy in January 2023 with about $1.7 billion in debt. This process ended in October 2023, with the company clearing almost $1 billion in debt.
Sadly, the remaining $800 million debt proved to be too much for the iconic shop.
The Party Must End
Corporate employees were sent home earlier this month as the Party City corporate headquarters were locked up, according to a CNN report.
An anonymous former corporate employee also shared that the company's product development team was prematurely recalled from its yearly vendors' trip that same month due to alleged "safety risks."
Eventually, regular employees were informed of the closure on Thursday via Microsoft Teams chats, causing great emotional stress.
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Party City will still ring in the New Year, however, with store closures slated for the month of February 2025.
Back in January, Google made headlines following multiple major layoffs that affected thousands of jobs.
Widespread layoffs were also announced by Publicis Groupe, TikTok, and Upwork in October.
