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Party City-Stores Closing
FILE - This is the sign on the front of a Party City store in Orchard Park, NY., on Dec. 22, 2024. (AP Photo/Gene J. Puskar, file)

Party City to close its stores as company files for bankruptcy

Party City announced that it's going to “wind down” its retail and wholesale operations as it prepares to shutter nearly 700 stores nationwide

By SARAH PARVINI
Published - Dec 22, 2024, 01:48 PM ET
Last Updated - Dec 22, 2024, 01:48 PM EST

LOS ANGELES (AP) — For nearly 40 years, customers flocked to Party City for Halloween costumes, favors for children's birthday parties and decorations for New Year's Eve celebrations. Now, the go-to shop for everything from cartoon-themed balloons to Super Bowl decor is closing stores.

Party City announced Saturday that it would start a “wind down” of its retail and wholesale operations as it prepares to shutter nearly 700 stores nationwide. The company has also filed for Chapter 11 bankruptcy protection for the second time in less than two years “to maximize value for the benefit of the company’s stakeholders.”

“The decision was made following exhaustive efforts by the company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors,” Party City said in a statement.

Party City also filed for Chapter 11 bankruptcy protection in January 2023. That move allowed for a restructuring that eliminated nearly $1 billion in debt. But “macroeconomic headwinds more recently proved too severe” to overcome, the company said.

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