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Party City to close all of its stores, report says
CHCOCity Holding(CHCO) CNBC·2024-12-20 19:38

Company Overview - Party City exited bankruptcy in September 2023, transitioning into a privately held company and canceling nearly 1billionindebt,withamajorityofits800U.S.storesremainingopen[1]−Thecompanyannounceditwillcloseallofitsstoresandhasinitiatedcorporatelayoffseffectiveimmediately[7]LeadershipandManagement−CEOBarryLitwincommunicatedtoemployeesthatthecompanymust"commenceawinddownprocessimmediately,"indicatingthatFridaywouldbetheirlastdayofwork[3][5]−LitwinwasappointedCEOinAugustandpreviouslyledGlobalIndustrialCompany,adistributionleaderinindustrialproducts[4][8]FinancialChallenges−Theclosureisattributedtoongoingfinancialchallenges,asPartyCityhadfiledforbankruptcyprotectionlessthantwoyearsagoduetoaninabilitytopayoff1 billion in debt, with a majority of its 800 U.S. stores remaining open [1] - The company announced it will close all of its stores and has initiated corporate layoffs effective immediately [7] Leadership and Management - CEO Barry Litwin communicated to employees that the company must "commence a winddown process immediately," indicating that Friday would be their last day of work [3][5] - Litwin was appointed CEO in August and previously led Global Industrial Company, a distribution leader in industrial products [4][8] Financial Challenges - The closure is attributed to ongoing financial challenges, as Party City had filed for bankruptcy protection less than two years ago due to an inability to pay off 1.7 billion in debt [9] - The company faced increased competition in the party goods and costume space, particularly from Spirit Halloween, which has expanded its operations [6][10] Market Dynamics - Online retailers have added pressure to Party City's operations, despite the company beginning to offer items on Amazon in 2018 [10]