Party City is going bankrupt. The party supply chain store, which specializes in affordable party supplies, costumes and decorations, has filed for bankruptcy as of January 2023; the measure is to help manage its debt, however the brand is not going out of business.
The filing comes as stores like Spirit Halloween, Home Depot, Amazon, Target and Walmart bolster their holiday supplies presence and assortment.
Party City operates more than 800 stores and noted in court filings that it is seeking approval to to shed 28 properties for retail stores described as “unnecessary and burdensome.” The company said in a release that it would continue to convert its stores into “next-generation prototypes” as well as evolve its halloween pop-up store strategy.
In 2019, Party City faced a hit from a global helium shortage and closed more than 45 stores that same year. In 2020, the pandemic and the subsequent halt to social gatherings took a hit to the events and decorations chain as well. Now, amid inflation, Party City is aiming to work through its debt, which was $1.67 billion as of Sept. 30. The company said it has been approved for a $150 million bankruptcy loan.