After 40 years in business, Party City is shutting down all of its stores, effective immediately.
"It's really important for you to know that we've done everything possible that we could to try to avoid this outcome," CEO Barry Litwin told corporate employees during a video conference call Friday, according to reporting by CNN. "Unfortunately, it's necessary to commence a winddown process immediately."
The New Jersey-based company's corporate employees were also informed Dec. 20 would be their final day of work.
Litwin, hired in August to strengthen the company's financial health, added that the team's very best efforts "have not been enough to overcome" the company's financial struggles, which were exacerbated by inflation.
The store chain struggled to pay a $1.7 billion debt load, forcing them to declare bankruptcy in January 2023, which forgave $1 billion. However, the remaining $800 million debt proved too big a burden to overcome.
More than 800 stores will close, leaving over 10,000 employees out of work ahead of the holidays.
