Popular retail chain Party City filed for bankruptcy protection on Saturday, a day after telling employees it would be implementing mass layoffs at its New Jersey headquarters.
The filing was filed in bankruptcy court for the Southern District of Texas, according to court documents obtained by CBS News. The company had debts ranging from $1 billion to $10 billion, according to filings.
Party City Chief Human Resources Officer Karen McGowan said Friday. Keep employees informed An email obtained by CBS News New York said the company was implementing “mass layoffs” immediately 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 conference that the company was “scaling down” its operations. According to CNN, some store employees received a letter Friday informing them that all of the chain’s stores will be closing in February.
Party City, which specializes in party supplies, was founded in the mid-1980s and has more than 700 company-owned and franchised stores across North America, according to its website. It also operates an e-commerce business through PartyCity.com. It’s unclear whether the online division will continue.
Party City did not respond to a request for comment from CBS News New York on Friday.
2024 It’s been a tough year For US retailers. According to data from research firm Coresight, more than 7,100 stores will have closed by the end of November 2024, an increase of 69% from the same period last year.
Aimee Picchi contributed to this report.
