For a U.S. retailer that brightened up birthdays, anniversaries, baby showers and weddings for decades, the party is over.
According to a report by CNN, Party City Holdco’s chief executive told company employees on Friday that the company would be closing all stores.
The nation’s largest party supplies retailer is suffering from declining sales, putting pressure on the company to pay its rent at about 800 locations. There are at least 80 locations in California.
See also: Big Lots faces liquidation after plan to sell to Nexus Capital falls through
“This is without question the most difficult message I have ever had to deliver,” Barry Litwin said at the meeting, which took place via video conference and was watched by CNN.
The last day of work for company employees is Friday, according to CNN. No severance pay is expected.
Bloomberg reported earlier this week that the company plans to file another bankruptcy in the next two weeks. This process would likely have resulted in the closure of its branches. The New Jersey-based company last emerged from bankruptcy in October 2023.
Party City, founded in 1986, is one of several struggling retailers.
Bankrupt retailer Big Lots announced earlier this week that it would not complete the sale of its assets to Nexus Capital Management. The company will begin selling its businesses in the coming days to protect the value of its real estate, Bloomberg reported.
The Container Store is preparing to file for bankruptcy in the coming weeks after months of losses.
