Party City has endured a turbulent rollercoaster ride over the past few years, leading to the company filing for Chapter 11 bankruptcy in January 2023 due to factors including global supply chain uncertainty, economic pressures from COVID-19 and the helium shortage in 2019. According to Business Insider, the retailer was forced to close over 30 underperforming stores after filing.
The company emerged from bankruptcy in September 2023 with about 800 stores remaining and a reduction in its debt load of nearly $1 billion.
A few days ago, Party City Holdings Inc. announced the appointment of Barry Litwin as its new President and CEO. Litwin, who previously led Global Industrial Company and Adorama, is known for his expertise in corporate growth and operational efficiency. His task is to improve the company’s financial performance and market position after it emerged from bankruptcy with significantly reduced debt and a streamlined store portfolio, leveraging his experience in increasing sales and profits.
In the company’s press release, Chairman Bob Hull expressed great confidence in Litwin’s ability to move Party City forward, citing his successful track record and employee-focused leadership style. Coming out of bankruptcy, Party City is now focused on rebuilding and positioning itself for future success. The company plans to leverage its restructured capital base and increasing consumer interest in festive items as it pushes forward with new store formats and expanded seasonal offerings.
The retailer hosted a special Halloween event on August 15, where customers could “experience their favorite character costumes in person and enjoy kid-friendly activities” and also receive “priority access to this season’s most coveted Halloween trends, including exclusive costumes from Party City.” During the event, customers received 31% off their entire in-store purchase.
In February 2024, Party City also introduced a new store format that quickly gained traction after successful pilot testing. The redesigned design offers an enhanced balloon shopping experience with a dedicated service area and introduces two distinct “Birthday Worlds” in each store – one for children’s birthdays and another for general celebrations. This layout replaces traditional aisles with themed mini-shops, making it easier for customers to find everything they need for their celebration.
The Party City store in Gaithersburg, Maryland, was the first remodeled location and opened to the public on May 25, followed by a location in Pensacola, Florida, in May and a store in Princeton, New Jersey, in June.
“We have moved away from the traditional shopping experience and developed two birthday worlds in each store. One is dedicated to children’s birthdays, the other to general birthday parties. These are complete mini-shops where everything comes together in one place. This way, the customer can easily find everything they need and hopefully discover a few surprises and fun ideas for their party along the way.”
Dion Miliaresis, vice president of merchandising at Party City, via The US Sun
The new format also allows Party City to test and introduce new products, especially those related to children’s parties, and offers dynamic merchandising and an improved queue experience. Positive customer feedback has prompted the retailer to accelerate the rollout of this format, with plans to roll it out to several more locations nationwide this year.
