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LOS ANGELES – Party City will be closing its doors nationwide after nearly 40 years in business, affecting at least 25 stores in Southern California, it was reported Friday.
CEO Barry Litwin informed corporate employees in a meeting reported by CNN that Party City has to “commence a winddown process immediately,” and that Friday would be their last day of work for the company.
Staff will not be receiving severance pay, and their benefits would end as the company goes out of business, the network said.
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The decision comes after the company could “overcome” its financial challenges, according to CNN.
A representative for Party City did not immediately respond to a request for comment.
Sitting at wooden benches, men and women stack tobacco leaves in one hand –- the components must be dry but soft, like the velvety texture of leather.
According to Party City’s online store directory, California has about 88 stores that may be impacted by the decision.
pirate slots ADVERTISEMENTThe company’s website shows at least 25 locations in Southern California. A news release from October indicated there over 700 company-owned and franchise store locations across North America.
Some of these stores that are independently owned and operated may continue to operate.
An automated message from a Party City store in Sherman Oaks stated, “We are here to stay. We look forward to serving our customers for years to come. Our name will change, but we will remain the party supply store for all celebrations.”
ADVERTISEMENTThe 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 US stores were able to stay open as it emerged from bankruptcy.
On Friday, Party City’s store employees received letters announcing that on Feb. 28 the company would close down and store staff would be terminated, CNN reported.
“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,” the letter stated. (With CNS report)
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