Party City to close its stores as company files for bankruptcy

LOS ANGELES — For nearly 40 years, customers flocked to Party City for Halloween costumes, favors for children’s birthday parties and decorations for New Year’s Eve celebrations. Party City announced Saturday that it would start a “wind down” of its retail and wholesale operations as it prepares to shutter nearly 700 stores nationwide. The company has also filed for Chapter 11 bankruptcy protection for the second time in less than two years “to maximize value for the benefit of the company’s stakeholders.” “The decision was made following exhaustive efforts by the company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors,” Party City said in a statement. Party City has faced growing competition from Walmart and Target and increasingly from occasion-based pop-up stores such as Spirit Halloween, which announced in October that it would also open 10 Spirit Christmas stores.