Party City to Shut Down Operations Nationwide

Party City, a longtime favorite for party supplies, is closing its doors across the U.S.

The retailer announced Saturday that it would begin winding down its retail and wholesale operations, leading to the closure of nearly 700 stores. Party City also filed for Chapter 11 bankruptcy protection for the second time in two years, citing rising costs and reduced consumer spending as key factors.

“For nearly 40 years, Party City has been the go-to destination for celebrations,” the company shared. While a 2023 restructuring eliminated $1 billion in debt, recent economic challenges proved too severe to overcome.

The New Jersey-based company confirmed that over 95% of its 12,000 employees would remain on board to assist with the shutdown process.

Increased competition from major retailers like Walmart and Target, along with seasonal pop-up stores such as Spirit Halloween, added to Party City’s struggles. Soaring helium prices and declining demand further contributed to its financial challenges.

The closure of Party City marks the end of an era for countless customers who relied on the store for everything from birthday balloons to holiday decorations.