Party City on Friday announced it will close all of its stores and has initiated corporate layoffs effective immediately, according to a CNN report.<\/p>\n
CEO Barry Litwin told corporate employees in a meeting viewed by CNN that Party City has to \u201ccommence a winddown process immediately,\u201d and that Friday would be their last day of work for the company.<\/p>\n
\u201cThat is without question the most difficult message that I\u2019ve ever had to deliver,\u201d Litwin said at the meeting, according to the report.<\/p>\n
CNN reported the company\u2019s closure was due to ongoing financial challenges at the party supply retailer, which less than two years ago filed for bankruptcy protection over its inability to pay off $1.7 billion in debt.<\/p>\n
The New Jersey-based chain exited bankruptcy in September 2023 through a plan that included transitioning into a privately held company and canceling nearly $1 billion in debt. A majority of its 800 U.S. stores were able to stay open as it emerged from bankruptcy.<\/p>\n
Litwin was named CEO in August and said at the time he saw \u201cmany opportunities to strengthen our financial performance and build a leading end-to-end celebration experience for consumers,\u201d according to a press release. <\/p>\n
Prior to his appointment, he was the CEO of Global Industrial Company, a distribution leader in industrial products.<\/p>\n
Competition in the party goods and costume space has grown in recent years, including Spirit Halloween\u2019s continued rise within and outside of the spooky season. The holiday costume chain announced in October that it would open 10 new \u201cSpirit Christmas\u201d stores, with some of the stores being converted from existing Spirit Halloween locations.<\/p>\n
Online retailers have also added pressure to Party City\u2019s operation, even as the company began to offer items on Amazon in 2018.<\/p>\n
Representatives for Party City did not immediately respond to CNBC\u2019s request for comment on CNN\u2019s report or potential story closures. Read the full CNN report here.<\/p>\n<\/p>\n
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