New York — Party City is closing down all of its stores, ending nearly 40 years in business, as confirmed by CEO Barry Litwin during a recent meeting.

Litwin stated that Party City is “winding down” operations immediately, indicating that Friday marks the last day of employment for staff, with no severance pay and benefits ending following the closure.

“That is without question the most difficult message that I’ve ever had to deliver,” Litwin expressed in the meeting. He admitted that the company’s past efforts were insufficient to combat persistent financial hurdles, significantly impacted by inflation and dwindling consumer spending.

Highlighting the company’s exhaustive attempts to avert the closure, Litwin emphasized, “Unfortunately, it’s necessary to commence a winddown process immediately.” Party City had previously declared bankruptcy in January 2023, managing to shed a significant portion of its debt but ultimately failing to stabilize financially.

The company has seen a decline in sales, facing mounting competition from e-commerce platforms and seasonal retailers, which compounded its existing challenges, such as a notable helium shortage affecting its balloon merchandise.

In recent weeks, communications regarding the company’s status have bewildered employees, with a lack of disclosures about financial difficulties during earlier meetings. On Friday, Litwin acknowledged this communication gap and extended apologies for the inadequacies in relaying critical information.

As the largest party supply retailer in the United States, Party City’s closure leaves a significant mark on the retail landscape. The shift reflects broader trends in the retail industry, where many companies grapple with similar challenges, leading to increased store closures nationwide.

Whether through financial recovery or capturing consumer interest, the future seems poised for significant changes within the party supply sector.