Popular retail chain Party City filed for bankruptcy protection Saturday, a day after revealing to its employees that it would be making mass layoffs at its New Jersey headquarters.
The filing was made in the Southern District of Texas Bankruptcy Court, according to court documents obtained by CBS News. The company had liabilities of between $1 billion and $10 billion, according to the filing.
Friday, Party City HR Director Karen McGowan informed employees in an email obtained by CBS News New York, indicating that it was conducting an immediate “mass layoff” at its headquarters in Woodcliff Lake, New Jersey.
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CNN reported Party City CEO Barry Litwin told company employees in a meeting on Friday that the company was “going out of business.” Some store employees also received letters Friday announcing that all of the chain’s stores would close in February, CNN reported.
Party City, which specializes in party supplies and was founded in the mid-1980s, has more than 700 company-owned and franchised stores across North America, according to its website. It also has an e-commerce business which it operates through PartyCity.com. It is unclear whether the online arm will continue.
Party City did not respond to a request for comment when contacted by CBS News New York on Friday.
2024 it’s been a difficult year for American retailers. There have been more than 7,100 store closures through the end of November 2024, an increase of 69% compared to the same period last year, according to data from research firm CoreSight.
