Party City is going out of business. Which Sacramento-area stores are closing?
After 40 years of selling celebration supplies, Party City is going out of business.
The nationwide party goods store intends to shut down all of its stores and “wind down” operations immediately, CNN reported on Friday.
The closures will likely impact all six Party City locations in the Sacramento area.
What is Party City?
Party City is the largest party retailer in North America with more than 850 locations across the United States, according to its website.
Its stores carry merchandise ranging from costumes and accessories to decorations and balloons for all types of celebrations. These include birthday parties, graduation gatherings and holiday get-togethers.
The chain puts a special emphasis on Halloween, calling the October holiday its “biggest season by far” on its website.
Why is Party City closing?
During a meeting, Party City CEO Barry Litwin told corporate employees on Friday that the decision to close more than 800 locations was due to extensive financial challenges, CNN reported.
Party City reportedly failed to keep up with inflation as higher costs and decreasing consumer spending pulled the company into the red.
In January 2023, the party supply chain declared bankruptcy after accumulating $1.7 billion in debt.
Party City was able to keep most of its stores open, CNN reported, noting that the chain has shut down more than 80 locations since the end of 2022.
In September, Party City announced it had reached an agreement with debtors that would help keep the business going but that plan ultimately failed.
“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin told employees. “Unfortunately, it’s necessary to commence a wind-down process immediately.”
As of Friday afternoon, Party City had not released an official statement on the closures.
A request for comment from Party City representatives had not been returned as of Friday afternoon.
Where are Party City stores in Sacramento area?
There are six Party City stores across the Sacramento area.
Here’s where they are:
- 1703 Arden Way, Sacramento
- 7440 Laguna Blvd., Suite 104, Elk Grove
- 6302 Sunrise Blvd., Citrus Heights
- 1386 East Main St., Woodland
- 6748 Stanford Ranch Road, Roseville
- 2780 East Bidwell St., Suite 100, Folsom
This story was originally published December 20, 2024 at 3:24 PM.
