HOUSTON, Texas – Party City announced just days before Christmas that it’s going out of business and shutting down all of its stores, according to CNN.
The news outlet reported that Party City’s CEO, Barry Litwin, who was hired just four months ago, announced to corporate employees on Friday, telling them that Party City is “winding down” operations immediately.
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He also reportedly told the employees that Friday would be their last day, they would not receive severance pay and their benefits would end.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting.
He added that despite the company’s “very best efforts” it was not enough to overcome their financial struggles.
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said. “Unfortunately, it’s necessary to commence a winddown process immediately.”
At the beginning of the year, in January, The New Jersey-based company filed for Chapter 11 bankruptcy protection, but said it had reached a pre-negotiated agreement with a bondholder group to support an “expedited restructuring” that is expected to be completed in the second quarter.
Party City files for bankruptcy after struggling with pandemic rebound, report says
The retailer reported business declined since the COVID-19 pandemic as it wrestled with slow sales during the lockdown along with several store closures.
The company, which operates more than 800 company-owned and franchise stores throughout North America, also said it battled higher freight, labor and raw materials costs.
The Houston area has 11 stores in our area. It’s not clear when exactly the stores will shut its doors.
CNN and NBC News contributed to this report.