Party City, the largest party supply retailer in the United States, has announced it is shutting down all of its stores, bringing nearly 40 years of operations to an end. The company’s CEO, Barry Litwin, broke the news during a corporate meeting, explaining that financial struggles had made it impossible to continue operations. Employees were informed that Friday would be their last day of work as the company begins winding down immediately.

Despite exiting bankruptcy in 2023 and canceling $1 billion of its $1.7 billion debt, Party City still faced over $800 million in liabilities, which strained its earnings and hindered recovery efforts. Competition from e-commerce platforms, pop-up retailers, and big-box chains like Amazon, Walmart, and Costco further compounded its challenges. Rising costs during the pandemic and a helium shortage, which impacted its critical balloon business, also contributed to the company’s decline.

The closure adds Party City to a growing list of retailers shutting down in 2024 as rising living costs and reduced discretionary spending have hurt businesses nationwide. With approximately 6,400 full-time and 10,100 part-time employees as of 2021, the shutdown marks a significant shift in the retail landscape.