Party City announced Friday that it could close all of its stores and has initiated corporate layoffs effective immediately, it said a CNN report.
CEO Barry Litwin told company employees in a gathering watched by CNN that Party City needed to “immediately begin a wind-down process” and that Friday could be their last day working for the corporate.
“This is without question the most difficult message I have ever had to deliver,” Litwin said on the meeting, in response to the report.
CNN reported the corporate's closure was as a result of the party supplies retailer's ongoing financial problems, which filed for bankruptcy protection lower than two years ago after failing to repay $1.7 billion in debt.
The New Jersey-based chain emerged from bankruptcy in September 2023 through a plan that included becoming a privately held company and canceling nearly $1 billion in debt. A majority of the 800 US branches were capable of remain open after the bankruptcy.
Litwin was named CEO in August and said on the time that he saw “many opportunities to strengthen our financial performance and create a leading end-to-end celebration experience for consumers,” Litwin said a press release.
Prior to his appointment, he was CEO of Global Industrial Company, a number one industrial products distributor.
Competition in party supplies and costumes has increased lately, including the continued rise of Spirit Halloween inside and out of doors of the spooky season. The holiday costume chain announced in October that it could open 10 recent Spirit Christmas stores, with a number of the stores being converted from existing Spirit Halloween locations.
Online retailers have also increased pressure on Party City, whilst the corporate began offering items Amazon in 2018.
Representatives for Party City didn’t immediately reply to CNBC's request for comment on the CNN report or possible closures of the story. Read that You can find the total CNN report here.
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