New York — Party City is closing down all of its stores, ending nearly 40 years in business, CNN has learned.CEO Barry Litwin told corporate employees Friday in a meeting viewed by CNN that Party City is “winding down” operations immediately and that today will be their last day of employment. Staff were told they will not receive severance pay, and they were told their benefits would end as the company goes out of business.
Party City’s product development team was recalled two weeks ago from its yearly trip with vendors and told to return home immediately, according to a former Party City corporate office employee, who wished to remain anonymous because they were not authorized to speak to the media. The team was told the company believed the trip posed a safety risk, because Party City had stopped paying its suppliers.All corporate employees were sent home on December 10.