A Party City in Harrisburg, Pennsylvania. Paul Weaver/SOPA Images/LightRocket/Getty Images
All Party City stores in the United States are set to close permanently, but the brand's Canadian operations will not be affected.
In a message to U.S. employees on Friday, Party City Holdco CEO Barry Litwin announced that the company would be shutting down due to overwhelming financial struggles. Litwin also informed staff that no severance payments would be provided, according to CNN.
Meanwhile, Canadian Tire Corporation, which owns Party City Canada, assured customers and employees that the Canadian locations are unaffected.
"Party City Canada operates independently from Party City Holdco in the U.S.," a Canadian Tire spokesperson said in a statement on Friday. "Stores in Canada remain open, both online and in person, continuing to offer Canadians everything they need for their celebrations."
Currently, Party City Canada has 69 stores across eight provinces, providing a variety of party supplies for different occasions.
In contrast, Party City Holdco in the U.S. has faced mounting financial difficulties, including a reported debt of approximately $800 million. This comes despite an earlier effort in 2023 to restructure by canceling $1 billion of its $1.7 billion debt through bankruptcy proceedings.
Canadian customers can expect Party City Canada to continue its operations as usual, unaffected by the challenges faced by its U.S. counterpart.
