The helium’s running low for Party City, the go-to spot for birthday balloons, Halloween costumes, and every glitter-dusted bash in between. The Woodcliff Lake, New Jersey-based retailer, a staple of strip malls and last-minute party plans since 1986, is teetering on the edge of extinction after filing for Chapter 11 bankruptcy in January 2023. Court documents and company statements paint a grim picture: Party City is now barreling toward liquidation, with plans to shutter all 800-plus stores across the U.S. and Canada by mid-2025 unless a miracle buyer swoops in.
The chain, which once boasted $2 billion in annual revenue, got slammed by a brutal combo of debt, inflation, and shifting consumer habits. Official filings show Party City entered bankruptcy with $1.7 billion in debt, a load it tried to lighten by closing 80 stores and slashing 25% of its corporate staff last year. But the numbers didn’t budge enough. By April 16, 2025, court records confirmed the company’s restructuring plan had fizzled, with creditors pushing for liquidation over a long-shot reorganization. The U.S. Bankruptcy Court for the Southern District of Texas approved the wind-down, signaling the end for a retailer that’s been a cultural touchstone for decades.
Party City’s downfall wasn’t just about money. The company leaned hard on seasonal sales—think Halloween and New Year’s Eve—but supply chain snags and helium shortages since 2022 made it tough to keep shelves stocked with costumes and balloons. Add to that the rise of online giants like Amazon and Walmart, which offered cheaper party supplies with doorstep delivery, and Party City’s brick-and-mortar model started looking like a relic. Court documents note a 30% drop in foot traffic from 2019 to 2024, with younger shoppers opting for digital alternatives or DIY party vibes.
Employees, some with decades at the company, are bracing for the worst. The chain’s workforce, once 18,000 strong, has dwindled to under 10,000, with severance plans outlined in bankruptcy filings offering little cushion. Storefronts are already sporting “Going Out of Business” signs, with liquidation sales kicking off in March 2025. Customers, meanwhile, are left nostalgic but helpless. Party City’s iconic aisles—crammed with piñatas, themed tableware, and enough glow sticks to light a small city—will soon be empty.
The company’s final days are mapped out in legal papers: inventory sell-offs will wrap by July 2025, with leases on most stores terminating by August. A skeleton crew will handle the wind-down, and Party City’s corporate office will close permanently by year’s end. No buyer has emerged to save the chain, despite earlier hopes of a sale to a private equity firm.
Party City operates 820 stores as of April 2025, including 770 in the U.S. and 50 in Canada. Liquidation sales are ongoing, with discounts of 20-50% on all inventory. The company’s website will cease operations by June 30, 2025. Remaining gift cards must be redeemed by May 31, 2025, per bankruptcy court orders.