Thousands of square feet of big-box space in Texas will soon stand empty as a national retailer’s colorful reign comes to an end.
Party City, the largest party supply retailer in the United States, will be closing all 850 of its stores across 45 states and Puerto Rico, following years of financial struggles and a looming bankruptcy, WFAA reported.Â
The closures, expected to be completed by Feb. 1, will leave millions of square feet of retail space vacant, including 756,000 square feet across 63 locations in Texas based on an average store size of 10,000 to 12,000 square feet.
With the retail industry still grappling with shifting consumer behavior and the aftermath of the pandemic, New Jersey-based Party City’s wind-down creates a challenge for landlords, who must now find tenants or reimagine these large-format spaces.
The closures come just over a year after Party City, headed by CEO Barry Litwin, emerged from Chapter 11 bankruptcy protection in October 2023. Despite efforts to restructure, including cost-cutting measures and a pivot toward digital sales, the company struggled to compete against e-commerce giants and dollar stores that increasingly offered party supplies at lower prices.Â
Earlier this week, Bloomberg reported that Party City was preparing for another bankruptcy filing, signaling that its financial troubles had become insurmountable.
Party City’s announcement follows a similar move by discount retailer Big Lots, which plans to close nearly 1,000 stores after a failed private equity sale. Several Big Lots leases in the Houston area have already been auctioned.Â
— Andrew Terrell
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