The once-thriving Party City, known for its balloons, party favors, and celebration essentials, is officially closing its doors after nearly 40 years in business. The company announced that it has begun the process of winding down its retail and wholesale operations, marking the end of an era for one of the most iconic party supply chains in the U.S.
Party City has already started going-out-of-business sales, advertising discounts of up to 50% on its website. Despite efforts to restructure and reduce its debt, the retailer ultimately succumbed to mounting financial pressures. Earlier this year, Party City exited bankruptcy after managing to cut it’s debt in half, leaving it in the red of only 1 Billion . However, the company refiled for bankruptcy this month, citing “macroeconomic headwinds” as too severe to overcome.
The chain, which once operated roughly 700 stores and employed about 12,000 people, will permanently close all locations by February 28. Employees will also be terminated, ending a chapter for many who worked to keep Party City afloat during its final years.
For decades, Party City was the ultimate one-stop shop for affordable party supplies, known for its expansive inventory and festive atmosphere. But the rise of competitors like Walmart, Target, Spirit Halloween, and Amazon chipped away at its dominance. The economic toll of inflation further accelerated its demise, as customers tightened their budgets and shifted to cheaper or online alternatives.
The closure of Party City is the latest in a string of retail casualties. Big Lots also announced plans to shut down its remaining stores, signaling a broader challenge for brick-and-mortar retailers in an increasingly online-driven marketplace.
For Party City, the party is officially over. Its closure marks the end of a company that brought joy to countless birthdays, weddings, and celebrations. While the discounts on its final inventory may attract customers for one last visit, the legacy of Party City as a hub for celebrations will live on in the memories of those who once relied on it to bring their parties to life.
