Party City closing in U.S., Canadian stores remain 'open for business'

A shopper leaves a Party City store in Vernon Hills, Ill., Oct. 15, 2020. (AP Photo/Nam Y. Huh)

The impending closure of all Party City locations in the United States will not extend into Canada.

According to CNN, Party City Holdco CEO Barry Litwin notified U.S. staff on Friday that it would be their final day of employment as the company was going out of business due to insurmountable financial challenges. Litwin also announced that severance pay would not be issued.

Canadian Tire Corporation, the parent company of Party City Canada, confirmed to CTV News that Canadian Party City stores remain open.

"The operations of Party City in Canada are entirely separate from Party City Holdco in the U.S.," a Canadian Tire spokesperson said in a statement issued Friday afternoon. "Party City Canada remains open for business online and in store, and will continue to provide Canadians with everything they need to celebrate all their life moments."

As of September, there were 69 Party City stores, located in eight provinces, operating in Canada.

The American party supply store chain's debt load is reported to be roughly US$800 million, despite the fact it had previously cancelled $1 billion of its $1.7 billion of debt in early 2023 by declaring bankruptcy.

With files from CNN