Party City files for bankruptcy, a day after announcing mass layoffs at its headquarters
Popular retail chain Party City filed for bankruptcy protection on Saturday, a day after telling employees it would be implementing massive layoffs at its New Jersey headquarters.
The filing was filed in Bankruptcy Court for the Southern District of Texas, according to court documents obtained by CBS News. The company’s liabilities range from $1 billion to $10 billion, documents show.
Party City chief human resources officer Karen McGowan on Friday informed employees An email obtained by CBS News New York said the company is making “massive layoffs” immediately at its headquarters in Woodcliff Lake, New Jersey.
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CNN report Party City CEO Barry Litwin told company employees at a meeting on Friday that the company was “winding down” the business. Some store employees also received letters on Friday saying all of the chain’s stores would be closed in February, CNN reported.
Founded in the mid-1980s, Party City specializes in party supplies and has more than 700 company-owned and franchised stores in North America, according to its website. It also manages e-commerce operations through PartyCity.com. It’s unclear whether online operations will continue.
Party City did not respond to a request for comment when contacted by CBS News New York on Friday.
2024 it’s been a tough year For US retailers. More than 7,100 stores had closed by the end of November 2024, a 69% increase from the same period last year, according to research firm CoreSight.
contributed to this report.
