Major retailer bankrupt in U.S. but Canadian stores remain open

A major retailer is out of business in the U.S. but the party continues in Canada.

Known for its party supplies and Halloween costumes, Party City has closed down, ending nearly 40 years in business in the U.S., several news outlets reported this month.

The retailer filed for Chapter 11 bankruptcy in the Southern District of Texas on Dec. 21. It had filed for bankruptcy previously in January of 2023. At that time the business planned to restructure its debt and keep a smaller number of stores open.

Neither filing impacts Canadian Party City locations as they are no longer part of the U.S. corporation. The Canadian Tire Corporation bought the brand in 2019 for $174.4 million.

“Party City Canada remains open for business online and in-store and will continue to provide Canadians with everything they need to celebrate all their life moments,” a post on the Party City website reads.

 

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Party City has struggled in the U.S., dealing with inflation, higher freight, labour and raw materials costs, and rising costs of helium.

Steve Mandell opened the first Party City store in East Hanover, New Jersey in 1986.

Lead photo: Ylanite Koppens