Party City is ceasing business after nearly 40 years. The retail chain, which has been a favorite go-to destination for everything from Batman-themed birthday parties to New Year’s Eve glitter bombs, said this weekend that it will close all 700 party-supply stores in the U.S.
“The decision was made 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.” Party City issued in a statement, according to the Associated Press.
If you’re like me, you may remember going through Party City’s endless aisles of decorations, trying to find the ideal Halloween costume or some fun party supplies for a birthday party. But it seems even the magic of parties couldn’t shield the company from today’s harsh retail economy.
Believe it or not, this isn’t Party City’s first bankruptcy filing; in fact, it’s its second in less than two years. Despite past restructuring efforts that eliminated over $1 billion in debt, Party City was unable to overcome what they call “macroeconomic headwinds.” In other words, inflation hit them hard as consumers have begun to tighten their party-planning budgets.
What’s kind of crazy is just how much the retail scene has transformed in the past few years. While Party City suffered, competitors such as Walmart, Amazon, and Target have expanded their party supply divisions. And don’t forget about Spirit Halloween, which is now venturing into Christmas territory with its new Spirit Christmas locations.
The somewhat good news here is that Party City intends to keep the majority of their staff on board during the wind-down process. And if you’re looking for party-supply materials, their website is presently offering up to 50% off as they go out of business.
That being said, it’s unfortunate to see another renowned chain close its doors. However, in today’s retail market, it is not unexpected that niche stores are finding it increasingly difficult to keep the party going. To that end, here is a list of ten other retailers closing their doors in 2024.