Party City reportedly shutting down

Party City is closing for good.

CEO Barry Litvin said it is “necessary to begin the termination process immediately” for the party supply retailer, CNN reported Friday, citing comments from Party City’s conference call with its corporate employees.

Speaking to Party City employees on Friday, Litvin reportedly said that Party City’s “best efforts were not enough to overcome” the problems it faced and that the company “did everything we could to try to avoid from this result.”

A ‘Halloween Costumes’ sign is displayed in the window of a Party City store in Richmond, California on September 22, 2020. (Getty Images)

Party City’s corporate employees will lose their jobs after Friday, the newspaper said, and the company is reportedly expecting widespread store closures in early February.

LARGE LOTS WILL BEGIN GOING OUT OF BUSINESS SALES AT REMAINING LOCATIONS

Includes Party City retail space in North America more than 700 company-owned and franchised stores as of the end of October, according to a press release published that month.

Difficulties from inflationdebt and other factors are reportedly hurting the company.FOX Business has reached out to Party City for comment on its reported plans to close permanently.

Party City store in Miami on January 18, 2023. (Joe Raedle/Getty Images/Getty Images)

This reportedly comes nearly four decades after the company launched and nearly 14 months after emerging from bankruptcy.

AMERICAN SHIPPING IS CLOSING ALL STORES DURING A REMAINING COMPANY FUND

When Party City? has completed its Chapter 11 bankruptcy proceedings Last year, it said it had “significantly strengthened its capital structure by eliminating approximately $1 billion in debt, increased its liquidity and optimized the Party City store portfolio by negotiating improved lease terms and exiting underperforming stores.”

The Party City store in Rockaway, New Jersey on September 6, 2019. (iStock / iStock)

It converted that debt into equity shares that would be owned by its lenders.

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Party City delisted from the New York Stock Exchange in January 2023 due to bankruptcy proceedings. Before that, it was traded on the stock exchange for about eight years.

Speculation about the retailer weighing another bankruptcy filing surfaced last week.

While all corporate-owned stores are closing, several dozen independently owned Party City locations will remain open.

“Local Party City franchisees are not affected by the bankruptcy,” franchisee Mitesh Patel of Austin, Texas told FOX Business.

Breck Dumas contributed to this report.