Fun National Retailer With 27 Stores in NJ Files for Bankruptcy
New Jersey-based Party City has filed for Chapter 11 bankruptcy protection.
The retailer, with 27 locations in the Garden State and over 800 across the country, made the move on Tuesday after years of losses and weak sales, which were made worse by inflation, and even a helium shortage that impacted its ability to sell balloons.
CBS News reports the company, which is the largest party supply and Halloween specialty chain in the United States, has already reached an agreement to cut its $1.7 billion debt load and financing has been obtained to keep its stores open.
According to CNBC, CEO Brad Weston says the chain plans on cutting $30 million in costs and will reduce its corporate workforce by 19 percent.
Some store closures are also possible in the future.
The company, which was founded in 1986, has over 16,000 full and part-time employees across the nation.