WPBN: After nearly four decades in business, Party City, which was the largest party supply store in the United States, is going out of business.
The CEO of Party City, Barry Litwin, reportedly informed corporate employees in a meeting on Friday that the company is “winding down” operations immediately, and that Friday will be their last day of employment.
It was the most challenging statement that Litwin had ever been required to deliver, he said on the conference call that was taking place.
Party City was unable to overcome the financial issues it faced, which ultimately led to the bankruptcy of the company. Despite the company’s best efforts, the company nevertheless failed.
Litwin continued by saying that the corporation has already done everything in its power to prevent the outcome, but that the process of winding down operations must begin immediately.
CNN reports that the announcement of Litwin’s appointment as the new CEO of the company was made four months ago. Improving the company’s financial health is his top focus at the moment.
The bankruptcy of Party City was declared immediately after Litwin’s arrival, and the company was able to discharge roughly one billion dollars’ worth of debt and close more than eighty locations between the end of 2022 and August 2024.
Despite this, it still had liabilities totaling more than 800 million dollars to pay out.
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More About ‘Party City’
In the United States, Party City is the most extensive retailer of party supplies for parties. Approximately 6,400 full-time employees and 10,100 part-time employees were employed by the corporation as of the year 2021.
In the face of increasing competition from e-commerce websites and pop-up ideas such as Spirit Halloween, the company that sells balloons, Halloween costumes, and other party supplies has experienced a setback.
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In addition, smaller chains were unable to survive the competition from big-box stores such as Amazon, Walmart, Costco, and others.In addition to this, it had to deal with growing prices during the pandemic as well as a scarcity of helium, both of which were detrimental to its essential balloon business.
Customers are cutting back on their discretionary spending as a result of the rising cost of living, which has led to the company becoming one of the many retailers that have gone bankrupt this year.
It is noteworthy that Big Lots made the announcement on Thursday that it would begin “going out of business” sales at all of its shops. This decision was made after a plan for a private equity group to save the bankruptcy retailer was unsuccessful.
According to Coresight Research, major retail chains are on track to close the most number of outlets in 2024 than they have managed to do in any year since the year 2020.
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