Party City Closing

Party City Holdco Inc. (Woodcliff Lake, N.J.) has announced plans to start winding down its retail and wholesale operations, including holding going out of business sales at its 700 stores nationwide. The retailer said those decisions came “following exhaustive efforts by the company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors.”

To accomplish an orderly wind down in the most efficient manner and to maximize value for the benefit of the company’s stakeholders, PCHI and certain of its subsidiaries voluntarily filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

These proceedings follow the company’s 2023 restructuring through which PCHI eliminated nearly $1 billion in debt, among other things. The retailer said “macroeconomic headwinds more recently proved too severe for the company to overcome.”

The company has retained Gordon Brothers to supervise the going out of business sales.