Orlando’s Party City to Close After 40 Years, Impacting 16,500 Employees

Orlando Faces Closure of Iconic Party Supply Chain

Orlando, Fla. – The landscape of party planning is changing as Party City, the largest party supply store in the United States, is shutting down operations after nearly 40 years in business. This announcement, made by CEO Barry Litwin during a video conference on December 20, 2024, has sent waves of shock through the company and its loyal customer base.

What is Happening?

Litwin informed employees that the company would commence a winddown process immediately, making December 20 the last day of employment for all workers. In a tough message, he expressed his sadness in having to deliver such news, stating, “That is without question the most difficult message that I’ve ever had to deliver.”

Employee Impact

The announcement has left approximately 16,500 employees, comprising both full-time and part-time workers, without jobs just days before the holiday season. Employees were informed that they would not receive severance pay, and their benefits would cease as the company begins its closure.

Why is Party City Closing?

Litwin attributed the company’s demise to increasing inflation and the resulting higher costs, which ultimately affected consumer spending. Party City had previously filed for Chapter 11 bankruptcy protection in January 2023. However, after exiting bankruptcy just a month later, the company managed to eliminate nearly $1 billion of its $1.7 billion debt and kept most of its 800 stores open. Despite these efforts, the chain could not overcome an ongoing burden of $800 million in debt, leading to the closure.

Broader Retail Challenges

The closure of Party City is not an isolated incident. Retailers across the country are grappling with significant economic challenges. For instance, another retailer, Big Lots, is preparing to close its remaining stores, further highlighting the struggles faced by the retail sector. As companies struggle to attract customers, many are finding themselves forced to shut down operations.

A Legacy of Celebration

For decades, Party City has been synonymous with celebrations—from birthdays to holidays, gatherings, and events. The chain’s inability to survive in a shifting market signifies a notable change in how consumers will approach party planning moving forward.

Conclusion

The winding down of Party City is a poignant reminder of the economic difficulties that many retailers are currently experiencing. As the company prepares to close its doors, the community may feel the loss not just in terms of the products offered but also as a part of the local culture that celebrates life’s milestones. With the holiday season upon us, this news serves as a stark contrast to the surrounding festive spirit.