Party City may file for bankruptcy a second time and close at least 700 stores nationwide, according to multiple reports. The New Jersey-based retailer emerged from bankruptcy, still with more than $800 million in debt that it simply cannot overcome.
Party City was hit hard in recent years by the COVID-19 pandemic lockdowns, supply chain issues and inflation. The company noted a helium shortage hurt its ability to inflate party balloons, impacting business.
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Slowing consumer demand and competition from big box stores like Walmart and Target were also factors.
Party City began its business in New Jersey in 1986. Private equity firms acquired the company and took it public in 2015.
In 2023, the retailer filed for bankruptcy, slashed $1 billion in debt and closed about 60 stores across the U.S.
The company hired a financial adviser to help it navigate through the bankruptcy process.
Party City did not comment on the reports of its financial troubles or that major closures are coming.
