The company, a leader in sales of material for birthdays, Halloween and New Year’s parties, viewings of the ‘Super Bowl’ and other celebrations, plans to close its nearly 700 stores next February, added The New York Times.
Party City detailed in a statement that it filed for bankruptcy before the United States Bankruptcy Court for the Southern District of Texas to “achieve an orderly liquidation.”
“The decision was made after exhaustive efforts by the company to find a way forward that would allow operations to continue in an immensely challenging environment,” the company declared in a statement, in which it blamed inflation and low consumption.
Party City restructured $1 billion of debt in 2023, but “the winds Most recent adverse macroeconomic events proved too severe so that the company could overcome them,” he added.
The company said it will retain more than 95% of its 12,000 workers “for some time to assist with the closure process.”
However, according to The New York Times, some workers were fired last Friday.
The company also encouraged customers to take advantage of the “amazing deals and great discounts” in their establishments due to the closure of the business
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