The party's over :(

[samhexum]

Party City shutters after nearly 40 years, firing workers without severance pay

 

Once the largest supplier of balloons and other fun-time supplies in the US, the company announced Friday it was closing down all of its stores, ending nearly 40 years in business.

The Party City CEO told employees that the chain was “winding down” operations immediately and that today would be their last day of employment.

Staff were told they would not receive severance pay, and they were told their benefits would end as the company goes out of business

[BuffaloKyle]

One small note, corporate employees were fired today only:

Also on Friday, some of Party City’s store employees received letters that the company would close down stores on February 28, at which point store staff would be terminated.

[+ Pensant]

Apparently there’s a helium shortage.

[pubic_assistance]

I picked up some balloons for a birthday party last week. I noticed there was something "off". Their usual gigantic Balloon display was empty. You could still choose something from the racks and have it inflated. It felt almost like they were getting ready to wind down this service, although not close the entire store.

[+ robear]

On 12/20/2024 at 3:49 PM, samhexum said:

The Party City CEO

I wonder how much of a severance payout he's getting ...

[+ augustus]

You mean a business that sells everything you can buy at Walmart or Amazon at a markup because it is a "party specialty" store isn't profitable? Go figure.

[+ BenjaminNicholas]

Soon to be Pity Party City

[samhexum]

26 minutes ago, augustus said:

You mean a business that sells everything you can buy at Walmart or Amazon at a markup because it is a "party specialty" store isn't profitable? Go figure.

That was sheer financial malpractice on their part to not consider Amazon years before it was founded.

[samhexum]

Mitch Modell, the former CEO of the famed New York sporting goods chain that went belly-up four years ago, wants to buy bankrupt retailers Party City and Big Lots.

Modell — whose family-run company featured the buzzy “Gotta go to Mo’s” jingle — is looking to raise $1 billion to bid to throw a financial lifeline to the flailing businesses, he told The Post on Monday.

Party City and Big Lots, which both filed for Chapter 11 protection in recent months, operate a combined 1,600 stores and employ a total of 33,000 workers.

Modell, 70, said he was at President-elect Donald Trump’s Mar-a-Lago resort on Dec. 19 when he got the idea to buy the legacy retailers and put his sons, Matthew, 23 and Maxwell, 22, in charge as co-presidents of the new company, he told The Post.

He has lined up a veteran team of executives to evaluate a possible deal — including Larry Meyer, former chief executive of Forever 21 and Uniqlo, and Demos Parneros, ex-CEO of Barnes & Noble.

“Our goal is to save 33,000 jobs,” Modell told The Post, adding that he is not putting in any of his own money.

Modell, whose family founded the company more than 130 years ago, believes he can revive Big Lots and Party City by offering largely the kind of merchandise his stores sold before filing for bankruptcy protection in 2020.

He would keep the retail brand names but get rid of the bulky furniture Big Lots is known for, while Party City would sell footwear and other sports apparel in addition to its core party supplies business.

To provide rock bottom prices, he intends to turn to inexpensive foreign manufacturing from Source One Global, which has factories in China, Mexico and India.

“Our sourcing capability is the difference maker,” he boasted, adding that he didn’t have this relationship with Source One Global when he was running Modell’s.

New Jersey-based Party City filed for bankruptcy on Dec. 20 for the second time in two years. Ohio-based Big Lots filed for bankruptcy in September.

Over the weekend, Big Lots struck a $490 million deal with Gordon Brothers Retail Partners and Variety Wholesalers that would save up to 400 stores. A bankruptcy hearing scheduled for Monday was adjourned for one day, according to court records.

Modell said he spoke with representatives of Gordon Brothers informing them that “I’m not going away and we want to be your partners.”

Big Lots reaches deal to keep hundreds of stores open, save jobs

[+ Pensant]

Brick and mortar is very tough, especially those catering to moderate and low income shoppers. Even Walgreen’s is facing challenging times.

[MikeBiDude]

Flip side to the brick and mortar “doom and gloom” and yes brick and mortar is tough!

 

Trader Joe's to open new stores in several states in 2025

WWW.FOXBUSINESS.COM

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Popular grocery chain Trader Joe's is expected to open a dozen additional stores in the new year. They will be located in California, New York, Pennsylvania and...

 

[samhexum]

The party might not be over for everyone at Party City, as some franchisee locations across the U.S. are expected to remain open.

Nearly 900 locations were in operation when the sudden news broke that Party City was going out of business. On Dec. 21, Party City filed in the U.S. Bankruptcy Court for the Southern District of Texas, after already emerging from a previous bankruptcy in 2023 with about $1 billion less in debt.

But nine franchises that collectively own 29 Party City stores plan to remain open despite the closure of hundreds of stores. Anisa Patel, who co-owns two Party City stores with her mother and father in the Austin area, told USA TODAY all franchisees are working together to stay afloat.

"We're all in this together, were in contact with them," Patel said. "We've all kind of been thrown in this together, we're having to rebuild on our own so we're banding together."

For her, the writing was on the wall for Party City, as she said the company had implemented markdowns on products back in October. But following the announcement of the bankruptcy, she feels that franchisees have been left in the dark.

"They have not communicated with us at all, there's not been a letter," Patel said. "This is our livelihood."

“The nine franchisees are sticking together and talking to each other each day and sharing resources,” Steve Fram, owner of two Party City locations in Virginia, told Richmond BizSense.

And as for keeping the name of Party City, Fram told the outlet they'll stick with it, "at this point.”

Party City did not immediately return USA TODAY's request for comment Thursday.

Where are Party City stores remaining open?

Patel provided a list of franchisee-owned stores that plan to remain open across the United States. USA TODAY contacted each location to confirm their plans.

[pubic_assistance]

On 1/9/2025 at 8:13 PM, samhexum said:

They have not communicated with us at all, there's not been a letter," Patel said. "This is our livelihood.

Another example of evil corporate management without a drop of human compassion..