Party City is going out of business, CNN reports

Party City is closing all locations after nearly 40 years in business, CNN reports.

The party supply store has 12 locations in Connecticut: East Hartford, Enfield, Faifield, Hamden, Manchester, Newington, Norwalk, Orange, Simsbury, Stamford, Waterbury and Waterford. 

The news came Friday during a video conference call with employees, witnessed by CNN, where the news organization reports Barry Litwin, Party City’s chief executive officer, told employees today would be their last day of employment.

CT Insider reached out to Party City for comment. 

The New Jersey-based company declared bankruptcy in January 2023. Three months ago, the company exited bankruptcy after a U.S. judge signed off on the retailer’s reorganization plan that canceled nearly $1 billion in debt, leaving them with $800 million in debt to pay off.

Litwin told employees that Party City’s “very best efforts have not been enough to overcome” the financial challenges, and the company was collapsing as a result, according to the report. “It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said. “Unfortunately, it’s necessary to commence a wind down process immediately.”

Party City reopened its Stamford Ridgeway Center location at the beginning of the month after closing it following the initial bankruptcy. 

“People know about Party City — they’re a destination,” said Jack deVilliers, senior market officer and senior vice president for Regency, which owns the Ridgeway Center, in an interview in August. “We thought it could be a good fit. We’re excited for Party City to come back.”

This is a developing story and will be updated.

Includes previous reporting by Paul Schott.