After 40 years in business, Party City is closing down for good. According to CNN, CEO Barry Litwin first shared the news with his corporate employees in a video conference on Friday. Litwin, according to CNN, said the company is “winding down” operations immediately with Friday being the last day for staffers.
On top of that, employees will not receive severance pay, and their benefits will end immediately.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said in the video conference, per CNN.
He added, “It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome. Unfortunately, it’s necessary to commence a winddown process immediately.”
How some employees found out
Some of Party City’s employees learned about the news through letters they received from the company.
In part, the letter stated: “Although Party City believes these closings are in the best interest of the company, we regret that we have had to take this step and thank you for your valued contributions and service to the company.”
Bankruptcy was filed in 2023
According to CNBC, Party City filed for bankruptcy in late 2023 as they faced debt of $1.7 billion. After bankruptcy, the company planned to transition into a privately held company. In August 2024, Litwin was named CEO, expressing optimism about reviving the company at the time.
“I am excited to join Party City at a pivotal time as we reposition the business for a stronger future,” he said in a press release. “Party City is a leader in party goods and supplies, and I see many opportunities to strengthen our financial performance and build a leading end-to-end celebration experience for consumers. I look forward to working closely with our team members, the leadership team, and the Board of Directors to create value for all our stakeholders.”
