Liquidation sales underway with discounts of up to 25% as chain prepares to shutter more stores after bankruptcy
A festive and craft store is set to close even more stores, with discounts of up to 25 per cent on liquidation sales.
The closure of four Party City stores comes after a difficult 2023 for the chain, when 30 stores were closed.
The retailer had fallen into serious financial trouble, blaming the fallout on the pandemic and the helium shortage, and eventually filed for bankruptcy in January that year.
Party City underwent a restructuring and its bosses managed to pay off around US$1 billion of its debt, allowing the company to survive and retain around 850 stores.
But four of them are now closing – in Topeka, Kansas, Salina, New York, Joplin, Missouri and Owensboro, Kentucky.
Party City has already closed about 30 locations and plans to close more
According to the Owensboro Times, the Owensboro store, about 100 miles from Louisville, will close its doors for the final time in mid-November.
The Salina location, which has been in business for 20 years, is also advertising a 25 percent discount on its liquidation sale but plans to stay open until Jan. 16, local news reported.
Another party city in Albany, Georgia, recently closed with a 90 percent discount to final prices, according to WALB.
The Topeka Party City store will close on January 18, 2025.
According to Forbes, Party City was successfully expanding before the pandemic, reaching $2.35 billion in revenue in 2019.
Overnight, key customers – those hosting or attending parties – had no reason to shop in store as social distancing was introduced.
As the country emerged from lockdowns, it was plagued by supply chain problems, rampant inflation and increased competition.
Other retailers have suffered in the post-pandemic market, including beloved clothing chain Salt Life, which announced Tuesday it would close all 28 of its locations in ten states.
Founded in 2003, the Florida-based retailer quickly grew into a competitor to established surf, beach and fishing brands such as Billabong, Hurley, Quicksilver and Rip Curl.
But the retailer was forced to file for Chapter 11 bankruptcy in June and hoped to cut costs and reduce debt to stay in business.
Salt Life, founded in 2003, filed for bankruptcy in June. A company that acquired it is now closing all its stores and will only operate the brand online
The liquidation sale began September 20 at all Salt Life locations, including the flagship store in Jacksonville Beach, promising discounts of up to 40 percent.
Earlier this summer, Bob’s Stores, which sold sports and casual clothing in six states, closed even though it has 21 stores.
Walmart has closed three more of its underperforming locations, while Rite Aid is closing another 27 pharmacies.
Dollar stores have also been hit hard, with 99 Cents Only announcing in April that it would close all 371 locations in California, Texas, Arizona and Nevada.
Likewise, 1,000 Family Dollars and Dollar Trees will be permanently closed in the coming years.