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