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All Party City stores in the U.S. are shuttering for good soon, with the Pleasanton location joining its peers nationwide in winding down operations.
Corporate officials with Party City Holdco Inc. confirmed the plan in a press release on Saturday (Dec. 21), one day after the news started to become public in media reports. “Going out of business” sales will be underway at its approximately 700 stores across the country, but a final closure date has not been announced yet for the Party City in the Metro 580 shopping center on Rosewood Drive — the retailer’s only location in the Tri-Valley.
“The decision was made following exhaustive efforts by the Company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors,” the Party City press release stated. “As with many other retailers, macroeconomic headwinds more recently proved too severe for the Company to overcome.”
Billed as a “one-stop-shop for all things celebration” during its nearly 40 years in business, the party supply retailer headquartered in New Jersey attempted to restructure in 2023 following tough times in recent years — a move that company officials said eliminated almost $1 billion in debt, but ultimately didn’t prove to be enough to survive.
The company and certain of its subsidiaries filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate “an orderly wind down in the most efficient manner and to maximize value for the benefit of the Company’s stakeholders”, officials said.
“The Company has filed customary motions with the Court seeking authority to commence going out of business sales and uphold its commitments to employees during the wind down,” officials said, noting that more than 95% of its 12,000 employees would be retained to help with final operations — although national news outlets reported corporate employees were let go.
“The Company thanks its customers for their business and appreciates the support it has received from its valued partners,” officials added. “During the going out of business sales, shoppers at Party City stores will be able to take advantage of incredible deals and deep discounts on amazing merchandise while supplies last.”
