Popular Party Store Announces Closure Of All Texas Stores

After nearly four decades in business, the nation’s most well-known party supply chain is closing all of its locations, leaving Texas shoppers without a go-to spot for balloons, decorations, and party essentials.

Get our free mobile app

CNN reports that the closure will impact all locations, including all Texas locations.

Get our free mobile app

Party City CEO Barry Litwin informed corporate employees last Friday during a video conference that the company would begin winding down operations immediately. This marks the end of an era for party store chain that has always been a staple for celebrations across the country.

Litwin revealed that all Party City employees, including those at corporate offices and retail stores, would no longer have jobs. Employees were also informed that they would not receive severance pay and that their benefits would cease as the company enters its final stages of operation.

“This is without question the most difficult message that I’ve ever had to deliver,” Litwin said. He added that despite the company’s “very best efforts,” it was unable to recover from the financial struggles that have plagued the business in recent years.

Why Is Party City Closing?

With a $1.7 billion debt burden, rising inflation, and declining consumer spending the company just couldn't bounce back.

While Party City successfully exited bankruptcy earlier this year and canceled nearly $1 billion in debt, they still owed $800 million, which affected their 2024 earnings.

The retailer also struggled with increased competition from online giants like Amazon and Walmart, as well as pop-up stores like Spirit Halloween.

A helium shortage during the pandemic, which hurt its critical balloon business, further compounded its problems.

List of Party City locations in Texas :

• Houston Area:
  • Houston (multiple locations)
  • Katy
  • Sugar Land
  • Pearland
  • The Woodlands
• Dallas-Fort Worth Area:
  • Dallas
  • Fort Worth
  • Plano
  • Arlington
  • Garland
  • Irving
• Austin Area:
  • Austin (multiple locations)
  • Round Rock
  • Cedar Park
• San Antonio Area:
  • San Antonio (multiple locations)
  • New Braunfels
• Other Cities in Texas:
  • El Paso
  • Corpus Christi
  • Lubbock
  • McAllen
  • Amarillo
  • Midland
  • Tyler
  • Waco

A Growing Trend in Retail Bankruptcies

Party City joins a growing list of major retailers that have declared bankruptcy in 2024. This year alone, other chains like Big Lots have also announced closures, citing similar challenges with inflation and reduced consumer spending.

Coresight Research reports that 2024 is on track to see the highest number of retail closures since 2020, marking a significant shift in how consumers shop.

As the doors of Party City locations across Texas close for the final time, it’s hard to ignore the shifting dynamics in retail and the challenges faced by traditional stores.

Alternatives like Amazon, Walmart, and Target will most likely step in to fill the void.