Financial Challenges and Bankruptcy
Party City Holdco, the largest retailer of party supplies in the US, is closing all its stores due to financial difficulties, with CEO Barry Litwin citing inability to overcome sales lag and debt burdens.
The company, which recently exited bankruptcy in October 2023, faces over $800 million in debt and a significant decline in net sales, leading to the decision to wind down operations.
Industry Trends and Comparisons
Party City's closure is part of a larger trend of retail bankruptcies and store closures in the US, with other retailers like and also facing significant challenges.
The retailer's struggles are attributed to competitive pressures from e-commerce and big-box stores, rising costs, and a shift in consumer spending habits, particularly post-pandemic.