WOODCLIFF, N.J. — The largest party store in the country is shutting down all of its stores after nearly four decades in business.

What You Need To Know

  • Party City is closing all stores

  • There are locations of the company across Kentucky

  • The CEO said financial challenges forced the closings

  • The company has been in business almost 40 years

Party City’s corporate employees were told Friday it would be their last day of employment. The company’s CEO Barry Litwin said Party City will be “winding down” operations immediately.

There are several stores throughout Kentucky. According to the company’s website, there are locations in Bowling Green, Florence, Lexington and Louisville.

Litwin pointed to the company’s financial challenges as the reason for its demise. Party City filed for bankruptcy in Jan. 2023.

The plan canceled almost $1 billion in debt, dissolved the company’s stock and kept a majority of its 800 stores open. It wasn’t enough.

The chain still had over $800 million in debt and that strained earnings this year.

Party City is the latest on a growing list of struggling retailers as customers cut back on discretionary spending.

Competition from retailers like Amazon, Walmart and other have also led to the collapse of smaller chains.