Party City said it would close the rest of the locations and is winding up its operations. The company, which serviced customer needs for decades, appeared on Saturday to officially release the news due to impossible financial difficulties.
These are closures following an unsuccessful attempt to navigate difficult market conditions. Inflationary pressures, increased competition by retailers such as Walmart, Target, and Amazon, and shifting consumer spending patterns have really hurt the company’s profitability.
The company filed for bankruptcy in January 2023 after being burdened with nearly $2 billion in debt. Even though the company was able to pay off $1 billion in debt and emerged from bankruptcy within a few months, it was insufficient to sustain operations. The retailer has now refiled for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The going-out-of-business sales have already started, and it is selling up to 50% of products on its website. It has around 700 outlets and 12,000 employees, which will now face the effect of closures. According to CNN, all the locations are to shut down by 28th February.
Party City was once a house of party balloons and inexpensive party supplies but has found itself depleted as competition and the economy continue to get more challenging than it could stand.
This comes after rival retailers, such as Big Lots, have done the same thing, which recently initiated liquidation sales to survive.
The bankruptcy of Party City marked the end of an era for this company that made so many parties. That is the crux of the story because brick-and-mortar retailers are in an extremely tight spot these days.
To Read More: Business