Party City files for bankruptcy again a day after revealing it’s going out of business and closing all 700 stores

During this restructuring, almost $1 billion of debt was removed, but at the time, the business was carrying around double that.

With the previous efforts not being enough to get Party City back on its feet, it has now refiled for Chapter 11 bankruptcy protection.

After almost 40 years of selling party goods, the retailer announced on December 22 that it has started to “wind down” all of its operations.

This consists of around 700 stores and 12,000 employees.

Party City has confirmed that during the closing down process, over 95% of staff will be kept on board.

“The decision was made following exhaustive efforts by the Company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors,” a press releasestated.

It further claimed that “macroeconomic headwinds…proved too severe for the Company to overcome.”

As well as having to tackle inflation, Party City’s customer base was flooded with competitors like Amazon, Walmart and Target.