Party City is closing all of its stores in the U.S. but will remain open in Canadian locations.
Party City’s CEO Barry Litwin told employees in a meeting viewed by CNN that the party supply chain would shut down its businesses in the U.S. and it would be “winding down” its operations immediately. CNN reported that staff were told they will not receive severance pay, and they were told their benefits would end as the company goes out of business.
In Canada, the brand is owned by Canadian Tire, who say its locations are unaffected.
“The operations of Party City in Canada are entirely separate from Party City Holdco in the U.S.,” a Canadian Tire spokesperson told the Star in an email.
“Party City Canada remains open for business online and in store, and will continue to provide Canadians with everything they need to celebrate all of their life moments.”
Less than two years ago the company filed for bankruptcy unable to pay off $1.7 billion in debt.
The retail chain exited bankruptcy in September 2023 with a plan that included transitioning into a privately held company and cancelling nearly $1 billion in debt.
The retailer had more than 850 locations in the United States, according to its website, and had been in business for more than 30 years.
