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wow. All Party City stores shut . ending pay and benefits immediately, right before Christmas. HARSH!!


wow. All Party City stores shut . ending pay and benefits immediately, right before Christmas. HARSH!!

https://www.cnn.com/2024/12/20/business/party-city-shut-down

Party City is closing down all of its stores, ending nearly 40 years in business, CNN has learned.

CEO Barry Litwin told corporate employees Friday in a meeting viewed by CNN that Party City is "winding down" operations immediately and that today will be their last day of employment. Staff were told they will not receive severance pay, and they were told their benefits would end as the company goes out of business.

"That is without question the most difficult message that I've ever had to deliver," Litwin said at the meeting, which was held on a video conference call.

Party City's "very best efforts have not been enough to overcome" its financial challenges, he added, resulting in the company's collapse. Litwin said the company struggled to contend with inflation, which sent the company's costs higher and dragged down consumer spending.

"It's really important for you to know that we've done everything possible that we could to try to avoid this outcome," Litwin said. "Unfortunately, it's necessary to commence a winddown process immediately."

Also on Friday, some of Party City's store employees received letters that the company would close down stores on February 28, at which point store staff would be terminated.

"Although Party City believes these closings are in the best interest of the company, we regret that we have had to take this step and thank you for your valued contributions and service to the company," the letter stated.

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