Party City announced that it would be closing all of its stores in a shock announcement CEO Barry Litwin delivered to employees Friday. “That is without question the most difficult message that I’ve ever had to deliver,” said Litwin during a video call with employees, reported CNN. Lit said operations for its roughly 800 stores across the U.S. would be “winding down” immediately. Staff were told they would not receive severance pay and their benefits would end as the company completely dissolves. Litwin was named CEO of the New Jersey-based retail brand four months ago with hopes of turning operations around. But Litwin told employees their “very best efforts have not been enough to overcome” Party City’s crushing $800 million debt. The company declared bankruptcy in January 2023 with $1.7 billion in debt. “It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said. “Unfortunately, it’s necessary to commence a wind down process immediately.”
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