Struggles mounted during the pandemic when a helium shortage threatened its balloon business
After a 40-year party, Party City (PC) is calling it quits. According to a report by CNN, PC will close the doors on all 850 global locations.
From CNN:
CEO Barry Litwin told corporate employees Friday in a meeting viewed by CNN that Party City is “winding down” operations immediately and that today will be their last day of employment. Staff were told they will not receive severance pay, and they were told their benefits would end as the company goes out of business.
Litwin told the call, ““That is without question the most difficult message that I’ve ever had to deliver,” according to the report.
Party City has been in bankruptcy since Jan. 2023 with the company struggling to pay off its $1.7 billion debt. They were able to cancel nearly $1 billion of that debt by declaring the bankruptcy, but the rest was too formidable. During that time, PC kept more than 800 locations afloat.
PC struggles mounted during the pandemic when a helium shortage threatened its balloon business which accounts for most of the company’s profits. According to the report, employees were caught off guard with the decision. All corporate employees were sent home Dec. 10, and corporate doors were locked.
According to the report, an internal memo stated that all locations will shutter the doors by Feb. 1.
This is an ongoing story. Check back for updates.
Photo by Harrison Keely, CC BY 4.0, via Wikimedia Commons.
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