Party City Holdco (PCHI) has announced plans to shut down its retail and wholesale operations after nearly 40 years of serving customers as a leading destination for celebration supplies. The decision, affecting approximately 700 stores nationwide, follows extensive efforts to sustain operations amid challenging economic conditions, including inflationary pressures and declining consumer spending. To facilitate an orderly wind down and maximize value for stakeholders, PCHI and its subsidiaries have voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. The company’s senior lenders have pledged financial support to ensure continued operations during this process, subject to court approval.
The company has retained over 95% of its 12,000 employees to assist with the closure. PCHI will conduct going-out-of-business sales, offering customers significant discounts on its wide range of party supplies while inventories last. Shoppers are further encouraged to explore and purchase a wide variety of items now, from birthday party essentials to holiday and New Year’s Eve decorations, while the selection remains plentiful. Despite its 2023 restructuring, which eliminated nearly $1 billion in debt, macroeconomic challenges proved insurmountable.
