Party City Is Going out of Business, Closing All NJ Locations
Party City, a staple for festive supplies and decorations for over 40 years, has announced it will close all remaining stores nationwide, including 25 locations across New Jersey.
This marks the end of an era for the New Jersey-based company, which once dominated the party supply industry.
The Announcement
The decision to shutter operations was confirmed during a company-wide video conference on Friday, where CEO Barry Litwin addressed corporate employees.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said. He explained that despite the company’s best efforts, financial challenges proved insurmountable. Effective immediately, Friday was the last day of employment for corporate staff, who were informed that they would not receive severance pay and that their benefits would end.
A Long-Expected Downfall
Party City’s financial troubles have been public for some time. The company filed for bankruptcy twice in recent years, with its most recent filing in January 2023.
After emerging from its first bankruptcy in September 2023, Party City carried an $800 million debt load that it struggled to manage. Although its first bankruptcy allowed the company to cancel nearly $1 billion in debt and close over 80 stores, the retailer’s financial health continued to deteriorate.
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Challenges Beyond Debt
The COVID-19 pandemic dealt a significant blow to the company as parties and gatherings came to a halt. Party City’s business was further affected by ongoing supply chain disruptions, inflation, and a helium shortage—a crucial component of its balloon sales.
The rise of big-box competitors like Walmart and Target, as well as seasonal pop-up stores such as Spirit Halloween, also eroded its market share. (one that the Wildwood Video Archive toured a few weeks back, which you can watch at the bottom of this article)
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin told employees during the meeting. “Unfortunately, it’s necessary to commence a wind-down process immediately.”
Impact on New Jersey Locations
Party City’s closure will affect 25 stores in New Jersey, including locations in Turnersville, Deptford, Voorhees, Millville and Mays Landing
Store employees reportedly received notices on Friday, informing them that operations would cease on February 28th.
A Legacy Ends
Founded in Woodcliff Lake, New Jersey, Party City grew to operate over 800 stores across the United States at its peak. The company served as the go-to destination for balloons, decorations, and themed party supplies for countless celebrations.
However, its decline underscores the challenges faced by retailers in adapting to economic shifts and changing consumer behaviors.
While Party City’s closure marks a significant loss for the retail industry, its legacy as a cornerstone of celebrations will undoubtedly be remembered by customers who relied on its products to make their special moments even more memorable.