For four decades, Party City was a go-to destination for birthday decorations, Halloween costumes, and last-minute party supplies. But in a shocking turn of events, the New Jersey-based retailer announced in December 2024 that it was shutting down all operations—effective immediately.

A Sudden End to a Retail Staple

On December 20, Party City CEO Barry Litwin sent a company-wide email to employees, confirming what many in the industry had feared: the party was over. The company, which had once operated over 850 stores nationwide, cited inflation, declining consumer spending, and an overall shift in retail shopping habits as the main reasons for its downfall.

For customers, the closure came as a shock. Some arrived at stores to find locked doors and "permanently closed" signs without warning. Employees were given little notice, with some reporting that they were informed of the shutdown just hours before it was publicly announced.

Financial Troubles Had Been Brewing

Party City’s financial problems weren’t new. In early 2023, the company filed for Chapter 11 bankruptcy, hoping to restructure its debt and emerge stronger. But despite reducing its store count and attempting to streamline operations, it never fully recovered. Rising costs in raw materials, supply chain disruptions, and competition from online retailers like Amazon put further strain on the business.

Holiday seasons, once a lifeline for the company, no longer provided the revenue boost needed to stay afloat. Halloween sales in 2024 were reportedly lower than expected, further sealing Party City's fate.

The End of an Era

New Jersey has lost one of its most recognizable retail brands. Party City was founded in East Hanover in 1986 and grew into a national powerhouse. Now, as liquidation sales begin and store locations shut down for good, employees and longtime customers are left wondering—what could have been done differently?

Some experts argue that Party City failed to adapt to changing consumer habits, relying too heavily on brick-and-mortar locations while competitors embraced e-commerce. Others point to economic conditions beyond the company's control.

Whatever the case, one thing is clear: Party City’s abrupt closure marks the end of an era, not just for New Jersey, but for party-goers across the country.