Party City, which has more than a dozen locations in the Bay Area, is shutting down all its stores, marking the end of nearly four decades in business.
CNN reported that CEO Barry Litwin informed corporate employees on Friday that the company would be ceasing operations immediately and that this would be their last day on the job. Litwin, who was appointed as CEO just four months ago, called it the most difficult announcement he has ever had to deliver.
Party City’s struggles are not new. According to KRON-TV, the company announced in 2019 that it was closing 45 underperforming stores nationwide.
Just over a year ago, the company emerged from Chapter 11 bankruptcy, which it had filed for in January 2023, but problems — including a helium shortage that hurt its balloon sales — continued to plague the embattled party chain.
While the restructuring allowed the company to cancel nearly $1 billion of its $1.7 billion debt load, it still faced over $800 million in remaining debt, putting immense strain on its earnings this year, according to CNN.
The company’s challenges can be attributed to familiar factors, including rising costs of goods in the post-pandemic era and competition from e-commerce giant Amazon, as well as major retailers like Walmart and Costco.
SFGATE reached out to Party City for comment but did not hear back by publication time.
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