Party City Announces Closure But Not In San Antonio
Party City, a prominent name in party supplies and celebrations for nearly four decades, has announced it is shutting down all operations. The decision was communicated to corporate employees in a video conference meeting on Friday, where CEO Barry Litwin delivered the news. Employees were informed that their last day of employment was effective immediately, with no severance pay and an end to their benefits.
Litwin described the announcement as the most difficult message he has ever delivered. He acknowledged the company’s efforts to overcome financial challenges but admitted these efforts were not enough to save the business. Inflation and reduced consumer spending had significantly impacted Party City’s ability to operate, he said.
“We’ve done everything possible to try to avoid this outcome,” Litwin stated, noting that the immediate wind-down process was unavoidable.
San Antonio Party City Locations
San Antonio’s four Party City locations will remain open despite nationwide closures expected by February 1, 2025. These stores, located on San Pedro, Southwest Military, Northwest Loop 410, and Culebra, are independently owned franchises, not directly controlled by Party City’s corporate office.
Owner Don Lasseter, who operates all four stores, declined corporate buyout offers he deemed too low, allowing his locations to avoid the impending shutdowns. While the iconic Party City brand faces closure nationwide, Lasseter has been preparing to sustain his stores, ensuring San Antonio residents can continue to find party supplies locally.
Remaining Store Closures and Employee Layoffs
In addition to the corporate announcement, Party City store employees received letters confirming that all locations would close by February 28, at which point store staff would also be terminated. The letter expressed regret over the closures, thanking employees for their contributions while citing the move as necessary for the company’s interests.
Bankruptcy and Financial Struggles
Party City has faced financial turmoil in recent years. After filing for bankruptcy in January 2023, the New Jersey-based company restructured its $1.7 billion debt, canceling nearly $1 billion of it. While it managed to keep most of its 800 stores open post-bankruptcy, more than 80 locations closed between late 2022 and August 2024. Despite these efforts, Party City’s remaining $800 million debt continued to strain its earnings.
Barry Litwin was appointed CEO just four months ago with the priority of strengthening Party City’s financial health. However, the company’s struggles persisted, ultimately leading to its collapse.
A Tumultuous Final Chapter
Signs of trouble became evident in recent weeks. The product development team was abruptly recalled from an annual vendor trip due to safety concerns, as the company had ceased payments to suppliers. By December 10, all corporate employees were sent home, marking the end of operations.
The closure of Party City marks the end of an era for a company that was once synonymous with celebrations and festivities. Its challenges highlight the growing pressures on businesses in today’s economic climate, where inflation and changing consumer behaviors have reshaped the retail landscape.
