With over 800 stores across the US, the entire Party City retail brand will be fully shutting down, with indications that the last day for retail stores is set for February 28th. This news is according to CNN.com
Locally Party City has stores in Deptford, Gloucester Twp, Voorhees, Mt Laurel, Millville and Delran.
UPDATE: The CEO announcement video was recorded by an employee on the call, and posted to YouTube. Link below:
Earlier today we reported that Big Lots will also be closing all stores and the discount retailer has already started “Going Out of Business” sales.. but the CEO has some home that Big Lots will be sold in the upcoming weeks.
For Party City there appears to be no glimmer of hope as CEO Barry Litwin told Corporate employees today in a live stream meeting that Party City is winding-down operations immediately, and that today will be their last day of employment.
It was a very tough and direct message to deliver on any day, let alone just five days before Christmas… particularly when (according to CNN article) it was stated the staff would not receive severance pay and their benefits would end as the company goes out of business.
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome, Unfortunately, it’s necessary to commence a winddown process immediately.”
Barry Litwin – CEO of Party City, as reported at CNN.Com
News of the stores closing on February 28th comes from store employees who received letters stating that date as the final day for their respective stores.
Party City is the largest party supply store in United States with over 6,000 full time and 10,000 part time workers as of just a few years ago.
The company which sells party and event supplies, balloons and Halloween costumes has been feeling the crunch from growing competition in many directions…. big box retailers like Walmart and Costco, online competition from Amazon, and even pop-up stores such as Spirit Halloween who is dominating the Halloween seasonal costume sales arena.
It was noted that inflation costs are impacting profit margins… every company is trying to hold down prices to consumers as product costs have increased, which in turn reduces profit margins and impacts consumer spending (due to higher selling prices).
CNN goes went on to say that corporate employees had a feeling that this was coming over the last few weeks noting a variety of clues were clearly aware to employees, including corporate employees who had been attending a vendor trip where recalled from that trip and immediately sent home.
Then on December 10th all corporate employees were sent home and the doors of the Corporate Office were locked, with employee access only available with a one-day request notification.