Party’s over as Party City announces closing of all stores, including Fairview Heights
New-Jersey-based Party City, the specialty retailer for party decorations, favors and more, is going out of business after nearly 40 years.
Party City has more than 850 stores in 45 U.S. states and Puerto Rico, including a store at 10845 Lincoln Trail in Fairview Heights.
It’s unclear how many employees at Fairview Heights location will be affected. An inquiry sent to Party City’s media relations was not immediately answered.
CNN reported Friday that CEO Barry Litwin informed corporate employees in a meeting that the business is immediately “winding down” operations and it is their last day of employment.
“That is without question the most difficult message that I’ve ever had to deliver,” stated Litwin, who joined the company as president and chief executive officer in August.
The corporate employees were notified that they will not receive severance packages and that benefits will end as the company shuts down, reported CNN.
CNN also reported that store managers were notified that all stores would close in February 2025.
Party City Holdco Inc. filed for Chapter 11 in January 2023 and emerged in October 2023, according to a filing with the U.S. Securities and Exchange Commission. However, the company still had more than $800 million in debt.
From late 2022 through August 2024, more than 80 Party City stores closed, stated the Dec. 20 CNN report.
Bloomberg reported earlier this week that Party City Holdco Inc. planned to file for bankruptcy again within the following two weeks. Liquidation of some stores was anticipated as a result.
News of Party City’s going out of business follows an announcement that Big Lots is also going out of business and will close its 963 stores.
A Dec. 19 press release stated that the company would not move forward with an asset purchase agreement with Nexus Capital Management.
Instead, Big Lots is “preparing to commence going out of business sales at all remaining … store locations in the coming days,” stated the release.
This includes locations in Alton and Fenton and Saint Ann in Missouri.
In August, Big Lots announced that it would close nearly 300 stores following a drop in sales. Stores in Fairview Heights and Centralia were among those closings.
