On the heels of Big Lots’ announcement that it’s going out of business, Party City said it’s taking the same path, liquidating assets and closing all stores by the end of February.
In October 2023, Party City emerged from bankruptcy with a turnaround plan. But revenue fell far short of expectations and the company will close all 700 of its stores.
"The decision was made following exhaustive efforts by the company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors," the company said in a statement.
The company is using going out of business sales to reduce its inventory of party supplies. The Party City website reports everything has been marked down by 50%.
The company said the bankruptcy process helped it reduce its debt to $1 billion, but that in the current economic environment that was still too much. Like some dollar stores, Party City struggled to sell its largely discretionary goods to consumers struggling with inflation.
Party City’s fate mirrors that of Big Lots, and in some communities that’s brought home when both retailers have outlets in the same shopping center. In Green Bay, Wisc., both stores are currently present in the Green Bay Shopping Plaza. Fox 11 reports both stores were holding going-out-of-business sales over the weekend.