Popular retail chain Party City filed for bankruptcy protection on Saturday, a day after announcing to employees that it would be implementing mass layoffs at its New Jersey headquarters.
The filing was filed in the bankruptcy court for the Southern District of Texas, according to court documents obtained by CBS News. According to the documents, the company had debts between $1 billion and $10 billion.
On Friday, Karen McGowan, Party City’s chief human resources officer, said informed employees in an email obtained by CBS News New York that it was carrying out an immediate “mass layoff” at its headquarters in Woodcliff Lake, New Jersey.
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CNN reported Friday that Party City CEO Barry Litwin told company employees at a meeting that the company was “winding down” operations. Some store employees also received letters on Friday informing them that all of the chain’s stores would close in February, according to CNN.
Party City, which specializes in party supplies and was founded in the mid-1980s, has more than 700 company-owned and franchised locations in North America, according to its website. It also has an e-commerce operation that it manages through PartyCity.com. It is unclear whether the online branch will continue.
Party City did not respond to a request for comment when reached by CBS News New York on Friday.
2024 has been a tough year for US retailers. According to data from research firm CoreSight, there were more than 7,100 store closures through the end of November 2024, an increase of 69% compared to the same time last year.
Aimee Picchi contributed to this report.
