• by Sarah Mahoney  @mahoney_sarah, December 23, 2024

Party City and Big Lots are both calling it quits, announcing plans to close their remaining stores following bankruptcy filings.

At Party City, based in Woodcliff Lake, New Jersey, the decision involves the closure of 700 stores nationwide, as well as a bankruptcy filing. The 40-year-old chain has seen numerous ups and downs over the years, including a 2023 restructuring that left it with $1 billion in debt. The retailer says it made the decision after “exhaustive efforts” to find a path forward. The company has 12,000 employees and hopes to keep 95% on for the winding-down sales over the next few weeks.

Big Lots, based in Columbus, Ohio, filed for bankruptcy several months ago and had been working on a deal with Nexus Capital Management. But that agreement collapsed, and Big Lots will close the remaining 960-plus locations. The discount retailer has already closed 400 units so far this year.

Rising inflation, high interest rates, shifting consumer preferences and changing freight costs have squeezed all retailers this year, and both Party City and Big Lots cited such pressures in their filings. And while retail bankruptcies typically rise in January, as companies hang on hoping holiday-spending surges might propel them over rough patches, neither of these companies found a path to survival.

“As with many other retailers, macroeconomic headwinds more recently proved too severe for the company to overcome,” Party City says in its announcement.

"We all have worked extremely hard and have taken every step to complete a going concern sale,” said Big Lots president and chief executive officer Bruce Thorn in the announcement. “While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the going-out-of-business process."

An announcement on the Big Lots website says that “without question, this is a very difficult day for our organization, our customers, and important partners. However, we’d like to take this opportunity to thank you for your partnership over the years – your support is truly appreciated.”