Party City, a chain of 700 party-goods stores throughout the United States, announced on Saturday it has filed Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. The bankruptcy will result in the company closing all of its locations.
The company cited "an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors."
As of Friday afternoon, associates were unaware of plans to close all locations.
"After working tirelessly to find a path forward that would allow us to continue operating, we will unfortunately be winding down our business, including the eventual closure of our stores," Party City said in a letter to investors. "The environment has continued to be extremely challenging for us and many other retailers, particularly given inflationary pressures on costs and consumer spending, and while we worked hard to navigate these headwinds, our very best efforts were ultimately not enough to overcome these challenges."
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Prior to closing all of its locations, Party City is offering sales of up to 50% on its items.
"It has been a true pleasure to be a part of your most special moments over the years. And, in the coming weeks, we hope you stop by to say goodbye and pick up your favorite items, whether you’re organizing a big celebration now or planning ahead for milestone moments to come," Party City said in a letter to customers.
The closures come at a time when more retailers in the U.S. are shutting locations.
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According to data provided to Scripps News by Coresight, there have been 7,308 confirmed or planned store closings in the U.S. so far in 2024, which is up by nearly 3,000 from a year ago. In the meantime, there have been 5,818 store openings since the start of the year.
Family Dollar has closed the largest number of stores in 2024, with 718 confirmed closings. CVS has closed or is in the process of closing 586 locations, while Big Lots is closing 580 locations this year, Coresight reports.
Earlier this week, Big Lots announced it was also going out of business after failing to find a buyer amid bankruptcy proceedings.
