Grab your balloons and streamers while you can because Party City is officially shutting down. The once-mighty party supply chain announced it's closing all of its stores after nearly four decades in business, marking the end of an era for decor enthusiasts and last-minute party favor shoppers everywhere.
Why is Party City closing?
Despite emerging from bankruptcy just this past September—shedding nearly $1 billion in debt in the process—the company was still grappling with an $800 million debt load. The New Jersey-based chain couldn’t keep pace with rising costs during the pandemic, a helium shortage that deflated its balloon sales and intense competition from the likes of Amazon, Walmart and Spirit Halloween.
When is Party City closing?
Corporate employees have been let go, and store employees were notified that all stores would be closing by February 28.
How many Party City stores were there?
Party City had more than 800 locations at one point, but closed more than 80 stores between the end of 2022 and August 2024.
Other major closures this year
Party City’s collapse is just the latest in a string of retail casualties this year. Big Lots is going out of business, and chains like Walgreens, Red Lobster, Pizza Hut, TGIFridays and 7 Eleven are closing dozens to hundreds of locations in the U.S.