CALIFORNIA – The retail chain Party City has announced the closure of all of its stores in the near future as the company failed to find a pathway forward through bankruptcy proceedings.
Party City Holdco Inc (PCHI) has 700 stores nationally and employs around 1,200 people. The announcement claims the company will be offering wind-down sales ahead of a going-out-of-business. In 2023, the company went through a restructuring process that freed up $1 billion by eliminating debt but ongoing economic factors in 2024 continued to put pressure on the struggling company.
“The decision was made following exhaustive efforts by the Company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors,” the company said in a statement issued Dec. 21. “PCHI is grateful to its team members for their commitment over the years and is retaining more than 95% of its 12,000 employees for some time to assist with the wind-down process. The Company thanks its customers for their business and appreciates the support it has received from its valued partners.”…