CEO Barry Litwin told its corporate employees Friday that Party City is “winding down” operations immediately and that today will be their last day of employment,to CNN. Party City staff were told they would be not receiving severance pay, and that their benefits would end as the company goes out of business.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said on a video conference meeting.“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said. “Unfortunately, it’s necessary to commence a winddown process immediately.”
The company’s Chief Human Resources Officer Karen McGowan broke down in tears several times on the short video conference call.The company’s plans to shutter business appear to have trickled down slowly in recent weeks, according to the CNN report. Two weeks ago, Party City’s product development team was pulled early from its yearly trip with vendors and told to return home immediately, according to a former Party City corporate office employee.
Employees were reportedly caught off guard, because management did not mention any financial trouble at recent town hall meetings. On the call Friday, Litwin apologized for the lack of communication. “We recognize the flow of communication has not been how we typically handle sensitive matters like this,” Litwin said.Until Friday, Party City was the largest party supply store in the United States, with approximately 6,400 full-time and 10,100 part-time workers as of 2021.