Party City, which recently exited bankruptcy, is closing all of its stores, according to media reports, in another sign of hardship for brick-and-mortar retailers from online shopping.
The New Jersey-based company that’s the largest party supply chain in the United States has 21 stores in Michigan, according to its website. The Detroit News left an inquiry with a Party City representative on Friday afternoon requesting information on the reported closures. Employees at multiple Party City stores in Metro Detroit said they weren’t able to speak on the topic or didn’t have information on store closings.
CNN reported CEO Barry Litwin, who took over in August, told corporate employees on Friday in a meeting that Party City is “winding down” operations immediately with it being their final day of employment. Staff were told they won’t receive severance pay and their benefits would end as the company goes out of business. Some Party City store employees received letters that the company would close down stores on Feb. 28, CNN also reported.
Retail advisory firm Coresight Research says major chains are on track in 2024 to close the highest number of stores since 2020. E-commerce giants like Amazon.com Inc., big-box retailers like Walmart Inc. and Costco Wholesale Corp., and pop-up stores like Spirit Halloween have challenged businesses like Party City.
Party City exited bankruptcy in September after filing for protection in January 2023 after difficult years from the COVID-19 pandemic and a helium shortage. It canceled $1 billion of its $1.7 billion debt and kept more than 800 locations open, after closing more than 80 locations between the end of 2022 and August 2024, according to its most recent financial documents.
Big Lots this week also said it was starting “going out of business” sales at all of its locations after an attempt by a private equity firm to rescue the retailer was unsuccessful.
Party City’s locations in Michigan are the following:
bnoble@detroitnews.com
@BreanaCNoble
