Party City shuts down, affecting other party retailers

GREELEY — For 31 years, Party America in Greeley has put the wrapping paper on presents and the helium in balloons for thousands of celebrations in Greeley. But news of a national party retailer and supply company filing for bankruptcy protection last week puts the family-owned mom and pop in a precarious situation.

Dave Peters, owner of Party America at 3608 W 10th St., has been using the same supplier for balloons, licensed products, etc., to keep the Greeley store stocked for decades. But the Chapter 11 bankruptcy filed Dec. 21, by Party City Hold Co., and its subsidiary, Amscan, which designs, manufactures and distributes celebration products, packed quite the punch. Amscan supplied the majority of Peters’ specialty and licensed products.

“Now we’re scrambling trying to find other suppliers for products,” Peters said.  “We think it’s going to be a little tough. It’s a lot of licensed products, like Toy Story and Mickey Mouse, we’ll be trying to get products in to keep our line going. As far as everyday products like solid color table wear, we were using another company for part of it, so now we’ll be relying on them” more.

Party City Holdco Inc. announced last week that it would close approximately 700 Party City stores nationwide — including 13 in Colorado — after nearly 40 years as their one-stop-shop retail shops for party accessories. Party America in Greeley is an independent franchise and is not affiliated with Party City.

According to a company news release, Party City Holdco had exhausted its efforts to move forward given inflationary pressures on consumer spending, “among other factors.”

PCHI and some of its subsidiaries filed Chapter 11bankruptcy protection Dec. 21 in the U.S. Bankruptcy Court for the Southern District of Texas. In the filing, the company states it has from $1 billion to $10 billion in liabilities and from 10,000 to 25,000 creditors. The company had tried to restructure in 2023, eliminating nearly $1 billion in debt.  

Stores will remain open to facilitate going-out-of-business sales.

An employee at the Fort Collins Party City who answered the phone Thursday said he was unable to comment on the closings, and he could not estimate how much longer the store would remain open through its closing sale.

Party City is a global leader in the celebrations industry with locations across more than 70 countries. As North America’s largest party goods retailer, Party City was considered the go-to retailer for party products.

Peters said his son reached out to their Amscan representative last week, and he learned of the immediate shutdown of the company.

“It’ll be challenging. From catering to everyday products, to licensed products and balloons, there’s going to be a lot of scrambling going on to keep things up and fill things back in,” Peters said. “We possibly are done receiving products form Amscan, but we still might get a few things. I can’t wait to see how they’re going to collect on their invoices. I have bills in March that will be coming due. But who knows where I’ll have to send them?”

Peters said news of the Party City closure has spread, and he’s seen more activity in his store in the last week because of it.

“People are calling, and we’re helping them out with their balloons,” Peters said. “We’ve always taken Party City balloons and filled them. We have our own fees for filling others’ balloons whether they buy them on the internet or other stores.”

Online, people are asking where they’ll go next for their party supplies. The good news in Greeley is that Party America has been open for 31 years, and Peters has no plans to shut it down.

“It’s not a pleasant thing,” Peters said of the supply disruption. “We’re going to be trying to get everything put back together. You’ve got to have hope.”

Overall, there are 13 Party City stores in Colorado that will continue to operate until the merchandise is sold: one each in Fort Collins, Centennial, Lakewood, Littleton, and Longmont, and two each in Aurora, Colorado Springs, Denver, and Westminster.

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