Useful information
Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
See what you click on FoxBusiness.com.
Party City is closing permanently.
CEO Barry Litwin said it was “necessary to begin a liquidation process immediately” for the party supplies retailer, CNN reported Friday, citing comments from a Party City conference call with its corporate workers.
While speaking to Party City staff on Friday, Litwin reportedly said that “Party City’s best efforts have not been enough to overcome” the problems it has been facing and that the company has “done everything it can to try to avoid this.” result”.
A sign reading “Halloween Costumes” is displayed in the window of a Party City store in Richmond, California, on September 22, 2020. (Getty Images)
Party City corporate employees will lose their jobs after Friday, according to the outlet. The company reportedly anticipates widespread store closures in early February.
LARGE LOTS TO START MAKING ‘DEAR OF THE BUSINESS’ SALES IN THE REMAINING LOCATIONS
Party City’s North American retail presence included more than 700 company-owned and franchised stores as of the end of October, according to a press release issued that month.
Difficulties resulting from inflation, debt and other factors are reportedly hurting the company. FOX Business has reached out to Party City for comment on its permanent closure plans.
A Party City store in Miami on January 18, 2023. (Joe Raedle/Getty Images/Getty Images)
This reportedly comes nearly four decades after the company launched and about 14 months after it emerged from bankruptcy.
AMERICAN FREIGHT CLOSES ALL STORES AMID PARENT COMPANY’S BANKRUPTCY FILE
When Party City completed its Chapter 11 bankruptcy process last year, it said it had “substantially strengthened its capital structure by eliminating nearly $1 billion in debt, improved its liquidity and optimized its portfolio of Party City stores by negotiating “better lease terms and fewer productive stores.”
A Party City store in Rockaway, New Jersey, on September 6, 2019. (Stock/iStock)
He converted that debt into shares that would be owned by his lenders.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
Party City was delisted from the New York Stock Exchange in January 2023 due to bankruptcy proceedings. Before that, it had been publicly traded for about eight years.
Speculation arose again last week that the retailer was considering filing for bankruptcy.
While all corporate-owned stores are closing, a few dozen independently owned Party City locations will remain in business.
“Local Party City franchisees are not affected by the bankruptcy,” Mitesh Patel, an Austin, Texas-area franchisee, told FOX Business. “There are a total of 29 franchised stores that will have their locations open and ready to continue serving their local communities.”
Breck Dumas contributed to this report.
