Party City Holdco Inc. (PCHI) has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in the Southern District of Texas and has begun to wind down retail and wholesale operations, including holding “going out of business” sales prior to closing its approximately 700 stores across the country.
The retailer was attempting a financial restructuring as it was emerging from its previous bankruptcy in October 2023. During this process, PCHI eliminated nearly $1 billion in debt, but found that “macroeconomic headwinds” were too fierce for it to overcome.
The decision to cease operations 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,” according to a company statement.
PCHI will retain more than 95% of its 12,000 employees for some time to assist with store closing processes. The retailer had named Barry Litwin as its new CEO in August 2024 to lead the restructuring process, and partnered with Instacart for same-day deliveries from its stores in October 2024.
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