Party City is reportedly going out of business and closing all stores

Woodcliff Lake-based Party City is closing all of its stores after nearly 40 years in business, CNN reported, citing a Friday morning meeting among Party City employees that was followed by CNN.

This reported announcement comes just over a week after it was revealed that the party supplies retailer was considering filing for its second bankruptcy in two years.

Instead, CNN reported Friday that CEO Barry Litwin, who was named CEO in August, told company employees in a meeting that Party City was immediately “ceasing operations” and that today would be their last day on the job.

“This is without question the most difficult message I have ever had to deliver,” Litwin said at the meeting, according to CNN, adding that “Party City’s very best efforts have not been enough to overcome the financial challenges.”

“It’s really important that you know that we did everything possible to prevent this outcome,” Litwin said, according to CNN. “Unfortunately, it is necessary to begin the resolution process immediately.”

A little over a year ago, Party City, which has 25 stores in New Jersey, emerged from Chapter 11 bankruptcy. As part of its bankruptcy plan, the company’s debt was reduced by $1 billion and the equity shares were turned over to the retailer’s lenders. Brad Weston, the previous CEO, left the company and the company closed several of its underperforming stores. But Party City has been suffering from years of declining sales and the chain has been behind on rent at some locations, according to Bloomberg News.

Breaking News

Dellupodisabato

Leave a Reply Cancel reply