Party City Holdco, Inc.

Is Party City still in business?
No, Party City is no longer operating. The company filed for Chapter 11 bankruptcy in December 2024, announced the liquidation of all approximately 700 stores, and the Joint Chapter 11 Plan of Liquidation was confirmed by the Bankruptcy Court on August 27, 2025. The Effective Date occurred on September 22, 2025. The company has been wound down and is no longer an operating business.

Is Party City Holdco, Inc. publicly traded?
Party City was previously publicly traded on NASDAQ under the ticker symbol PRTY. The stock has been delisted following the company's liquidation. All existing shareholder interests in PCHI were canceled, released, and extinguished under the Plan of Liquidation. Holders of interests in PCHI are not entitled to any recovery or distribution.

Who founded Party City?
Party City was founded in 1986 by Steve Mandell in East Hanover, New Jersey, with an initial investment of $125,000. The first store occupied 4,000 square feet and focused on comprehensive party supplies and seasonal merchandise.

Why did Party City go out of business?
Party City went out of business due to a combination of factors including inflation, declining consumer discretionary spending, intense e-commerce competition from Amazon and other online retailers, shifting consumer preferences away from brick-and-mortar retail, and contracting margins. Despite emerging from its first bankruptcy in October 2023 with nearly $1 billion in debt eliminated, the company could not overcome these challenges. Comparative store sales fell 9.5% and consumer products division sales declined 24.8% in the 14 months between the first and second bankruptcy filings.

How many Party City stores closed?
All approximately 700 Party City stores were closed as part of the liquidation. Going-out-of-business sales commenced in December 2024. The company hired Gordon Brothers to assist in the liquidation process.

What happened to Party City employees?
CEO Barry Litwin informed corporate employees on December 20, 2024, that it would be their last day of employment, that they would not receive severance pay, and that their benefits would end. Store-level employees (more than 95% of approximately 12,000) were retained temporarily to assist with the wind-down process. All employees were ultimately let go as stores closed.

What was Amscan?
Amscan was Party City's manufacturing and distribution subsidiary, designing, manufacturing, and distributing celebration products including balloons, decorations, and party supplies. Amscan provided vertical integration capabilities and served both Party City stores and external retailers. The company exited its manufacturing business after its first bankruptcy in 2023. Amscan filed for Chapter 11 alongside the parent company in December 2024.

What is the Liquidating Trust?
A Liquidating Trust was established under the Joint Chapter 11 Plan of Liquidation to administer remaining assets, resolve claims, and distribute any remaining value to creditors according to the priority established in the Plan. Administrative claims must be filed within 30 days of the Effective Date (September 22, 2025).

Party City was founded in 1986 by Steve Mandell in East Hanover, New Jersey, with an initial investment of $125,000. Mandell identified an opportunity in the highly fragmented party supplies market, where small mom-and-pop operations carried limited inventory and no major player dominated the niche. The first Party City store occupied 4,000 square feet and immediately demonstrated strong consumer demand for comprehensive party supplies.

In 1987, Mandell made a strategic decision to focus heavily on Halloween, converting over a quarter of his store space into a "Halloween Costume Warehouse." This move proved highly successful and established Halloween as a critical revenue driver, eventually accounting for approximately 25% of annual revenue.

Party City began franchising stores in 1989, with the first franchise location opening in Hazlet, New Jersey. By 1990, Mandell owned four Party City stores and incorporated the business as a franchising operation. The company grew rapidly: 11 stores by the end of 1990, 16 additional franchised stores in 1991, 26 more in 1992, and another 26 in 1993, bringing the total to 58 locations. By 1993, annual revenues reached $2.4 million with net profits approaching $235,000.

In late 1993, Mandell decided to de-emphasize franchising in favor of company-owned stores, which generated greater returns than franchise fees and allowed better control over inventory and operations. The company went public in 1998, providing capital for further expansion.

Throughout the 2000s and 2010s, Party City continued expanding across the United States, establishing locations from Hawaii to Puerto Rico. The company developed the Halloween City concept, operating approximately 300 seasonal pop-up stores during the Halloween season. Party City also invested in digital capabilities, mobile applications, and e-commerce. Amscan, the manufacturing subsidiary, provided vertical integration in balloon and decoration production.

In January 2023, Party City Holdco Inc. and certain domestic subsidiaries filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The company emerged from bankruptcy in October 2023, shedding nearly $1 billion in debt. Then-CEO Brad Weston commented on the "bright future that lies ahead for PCHI." The company took steps to create a more efficient and profitable business, including optimizing inventory, initiating layoffs, updating retail pricing methodology, and exiting its manufacturing business to focus on retail and wholesale.

However, in the 14 months since emerging from bankruptcy, Party City faced industry-wide challenges including inflation, a pullback in discretionary spending, shifting consumer preferences, and contracting margins. Deborah Rieger-Paganis, Party City chief restructuring officer and AlixPartners managing director, stated in court documents that despite efforts to reposition the company for long-term growth, sales and store traffic took a significant hit. Comparative store sales fell 9.5% between July 2023 and July 2024, while consumer products division sales declined 24.8%.

In September 2024, the company sought ways to raise additional capital, but those efforts came up short. On December 21, 2024, Party City filed for Chapter 11 bankruptcy protection for the second time, announcing an orderly wind down of its business. The company hired Gordon Brothers to assist in the liquidation process. Going-out-of-business sales commenced at approximately 700 stores nationwide. The company retained more than 95% of its 12,000 employees temporarily to help with the wind-down process.

The Joint Chapter 11 Plan of Liquidation was filed on June 26, 2025. The Disclosure Statement was conditionally approved on June 30, 2025. The Plan was confirmed by the Bankruptcy Court on August 27, 2025. The Effective Date occurred on September 22, 2025, and the Plan was consummated. All existing shareholder interests in PCHI were canceled, released, and extinguished. All executory contracts and unexpired leases were deemed rejected unless previously assumed.

Party City's liquidation was controversial in several respects. CEO Barry Litwin's announcement on December 20, 2024, that corporate employees would not receive severance pay and that their benefits would end drew criticism from employees and labor advocates. The timing of the going-out-of-business sales, just before Christmas and New Year, was described by chief restructuring officer Deborah Rieger-Paganis as "unfortunate" but "essential" to capture the benefit of the holiday selling seasons.

The company's two bankruptcy filings within less than two years raised questions about the effectiveness of the first restructuring. The initial Chapter 11 filing in January 2023 eliminated nearly $1 billion in debt, but the company continued to face operational challenges. Critics questioned whether the first restructuring adequately addressed the company's fundamental business model challenges or simply delayed the inevitable liquidation.

The retention of more than 95% of 12,000 employees during the wind-down process was noted as a positive step, though the temporary nature of the employment and the lack of severance for corporate employees drew criticism.