Party City

About Party City

Party City filed for Chapter 11 bankruptcy on January 17, 2023. The party supply retailer had 800 stores and 1.7 billion in debt. Party City had been struggling with competition from Amazon, dollar stores, and Spirit Halloween. CEO Brad Weston led the restructuring. Helium shortages also impacted the balloon business, a key revenue driver. Party City emerged from bankruptcy in September 2023 after eliminating 1 billion in debt. Despite the restructuring, Party City filed for bankruptcy again in 2024, announcing it would close all stores. The second bankruptcy was attributed to continued declining sales and an unsuccessful holiday season. The case illustrates how some retailers cannot be saved through bankruptcy restructuring when underlying business fundamentals are too weak.