WALDORF, Md. — Party City Holdco Inc. (PCHI) announced Saturday, Dec. 21, that it will wind down operations and close its approximately 700 stores nationwide after filing for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. The move comes after nearly 40 years as a leading retailer of celebration supplies and following a previous bankruptcy in 2023 that reduced the company’s debt by $1 billion.
In a statement, PCHI cited “macroeconomic headwinds” such as inflationary pressures on costs and consumer spending as contributing factors in the decision to shutter its retail and wholesale operations. Despite restructuring efforts last year, the company was unable to sustain operations in the challenging economic climate.
“PCHI is grateful to its team members for their commitment over the years,” the company said in its announcement. More than 95% of the company’s 12,000 employees will be retained temporarily to assist with the wind-down process.
To facilitate the closures, the company has initiated going-out-of-business sales at all its corporately owned locations, offering discounts on party supplies, decorations, and seasonal merchandise. Customers are encouraged to shop early for the best selection, with store locations available at partycity.com.
In Charles County, the Waldorf location is slated for closure.
Other locations outside of Southern Maryland listed to close include Annapolis, Baltimore, Bel Air, Catonsville, Cockeysville, Columbia, Forestville, Frederick, Gaithersburg, Hagerstown, Lanham, Laurel, Owings Mills, Pasadena, Rockville, Salisbury, Westminster, and Wheaton.
The company has not disclosed details about franchise-owned stores or their potential closures.
Court filings indicate that PCHI’s senior lenders will provide financial support to sustain operations through the liquidation process, pending court approval. The company also seeks to uphold commitments to its employees during the transition.
This marks the end of an era for Party City, which thanked its customers and partners for their support over the decades. Shoppers can expect significant discounts as the company closes its doors.
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