Party City has announced it will permanently close its doors by the end of February 2025.
This marks the end of a 38-year run for the company that helped shape countless celebrations, from birthdays to New Year’s Eve partie
Store managers were informed in an internal letter that the company would begin a “wind-down process” starting immediately.
Employees willing to stay until the closure will retain pay and benefits through February.
However, corporate and distribution center workers were laid off last week.
Hiring? Post jobs for free with WhatJobs
The Impact: 700+ Stores to Shut Down
Party City currently operates 748 stores in North America, employing over 16,000 people. While the exact number of layoffs remains unclear, all locations in the United States are set to close by February 28.
The company’s financial struggles have been mounting.
In January 2023, Party City filed for Chapter 11 bankruptcy but managed to emerge from it by restructuring its debt.
Despite efforts to stabilize, including canceling nearly $1 billion in debt, the retailer couldn’t withstand persistent inflation and changes in consumer spending habits.
Hiring? Post jobs for free with WhatJobs
Retail Industry Struggles Continue
Party City isn’t alone in facing retail turbulence. The US retail industry has seen 7,327 store closures in 2024, a significant 58% increase from the previous year.
Other casualties include chains like 99 Cents Only, Advance Auto Parts, and American Freight.
Experts attribute these closures to several factors:
- E-commerce Competition: Platforms like Amazon, Shein, and Temu have siphoned consumer dollars with convenient and affordable shopping options.
- Inflationary Pressures: Rising costs for essentials have led even affluent consumers to cut back or switch to discount brands.
- Changing Consumer Behavior: Many shoppers now prefer multipurpose retailers like Target and Dollar Tree for budget-friendly options.
Deborah Weinswig, CEO of Coresight Research, said:
“This is the highest number of store closures since 2020, when the pandemic disrupted the retail landscape.”
A Tough Year for Physical Retail
Despite efforts to recover, Party City’s closure reflects broader trends in the retail world. Inflation, shifts in spending, and the growing dominance of e-commerce have made survival increasingly difficult for traditional brick-and-mortar stores.
For shoppers like Brooklyn resident Liyah Thompson, who was purchasing decorations for her daughter’s birthday, the news is bittersweet. “Once Party City closes, I’ll probably shop at Target or Dollar Tree,” she said.
Need Career Advice? Get employment skills advice at all levels of your career
A Changing Landscape for Celebrations
As Party City prepares to close its doors, customers and employees alike are left reflecting on its legacy. The closure marks another chapter in the shifting dynamics of retail, where convenience, affordability, and innovation continue to dictate success.
