Chile, looks like Friday (December 20th) was a HARD day Party City headquarters after the bomb announcement. With the holidays just days away, CEO Barry Litvin let all of the company’s corporate employees go without severance pay. Why? After 40 years as the largest party supply store in the United States, Party City is closing all of its stores.
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This is why Party City is closing
By: CNN:In a devastating video call, Party City’s CEO said the company was “collapsing.” Operations were suspended immediately. Along with the layoffs, CEO Litvin informed corporate staff that their benefits would be cut because the company was out of business, with the chief human resources officer reportedly in tears as he explained the part.
Despite its “best efforts,” Party City has been unable to turn its financial woes around and is reportedly no longer sustainable as the business struggles with high prices. higher prices reduced customer spending.
“It’s really important for you to know that we’ve done everything possible to try to avoid this outcome,” Litvin said.
As noted, money has been PC’s biggest problem. Litwin joined the company as its CEO four months ago, and a month after the company emerged from bankruptcy in January 2023 had about $1.7 billion in debt, and the bankruptcy status took care of about $1 billion of that.However, the remaining $800 million plus debt crippled them in 2024 revenues.
After THESE company moves, employees suspect trouble
CNN suggested that employees began to suspect something was up. Two weeks ago, Party City ordered its product development team back home for security reasons. The company allegedly stopped paying its overseas suppliers.
In addition, all corporate employees were ordered to go home on Dec. 10. The next day, Party City said in an email that employees must give one day’s notice to visit the office.
Ultimately, however, employees claim PC left them in the dark about the company’s financial status, CEO Litvin said in a video call. “We recognize that the flow of communication was not the way we normally handle such sensitive matters.” Litvin said:
What’s next for store employees?
CEO Litvin told CNN that the bombshell message was the “hardest” he’s ever had to deliver.
Corporate employees weren’t the only ones reeling from the news Friday, CNN reports that some store employees also received letters informing them of the company’s closing. Party City reportedly plans to close all stores and lay off those employees on February 28. The company closed more than 80 stores between 2022 and August 2024. However, it had managed to keep more than 800 open before this announcement shop.
“While Party City believes these closures are in the best interests of the company, we regret having to take this step and thank the company for your valuable investment and service.” The letter reportedly says:
Another major retailer, Big Lots, announced this week that it would also be closing more than 900 stores.
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What do you think roommates?
