HOUSTON, Texas – Last week, Party City announced it’s closing all of its stores after filing for bankruptcy in January. But we have some good news for Houstonians: the party is not quite over!
Although most Party City locations will be shutting down soon, two locations in Humble and Shenandoah will remain open for the foreseeable future.
“We stand on our own, we buy our own merchandise, and we are excited to continue with the party and help people celebrate,” said Emily Morgan, local owner and operator of two Party City stores in the Houston area.
Morgan said that despite the company-wide closures, her stores in the Houston area will not be impacted because they are locally owned and operated.
“We are about 30 left in the U.S. and Puerto Rico. In Texas, there are two in Houston, three in the Austin area, and four in San Antonio that are all locally owned,” Morgan said.
She added that her two stores can remain open mainly because she has been a part of the community for more than 30 years. She also mentioned that her stores carry different products from the corporate stores and her prices are also different.
On Friday, Party City CEO Barry Litwin, who was hired just four months ago, announced to corporate employees that Party City is “winding down” operations immediately.
He said 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.
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. It’s not clear when exactly the nine remaining stores will shut its doors.