Party City announced the closure of all its stores and immediate corporate layoffs due to ongoing financial struggles. CEO Barry Litwin informed employees that Friday marked their last day. The company, which filed for bankruptcy in early 2023 over $1.7 billion in debt, emerged from bankruptcy in September, transitioning to a privately held entity and canceling nearly $1 billion in debt. Despite efforts to improve performance, intensified competition from chains like Spirit Halloween and pressure from online retailers impacted its operations. Litwin previously highlighted opportunities for financial strengthening in a press release following his appointment in August.
