The party has crashed for longtime retailer Party City, which announced it will close all of its locations, including its store in Folsom’s Broadstone Marketplace.
Party City, a retailer known for its vast selection of party supplies for events ranging from birthday celebrations to New Year’s Eve bashes, Halloween, and Super Bowl parties, has been a go-to destination for festive shoppers for decades. The company, which was founded in 1986, currently operates 748 locations in North America and employs more than 16,000 people.
The announcement marks the culmination of a year-long struggle for the company. In January 2023, Party City filed for Chapter 11 bankruptcy protection, emerging from bankruptcy just one month later after canceling nearly $1 billion in debt. Under the leadership of Litwin, who became president and CEO in August 2023, the company attempted to regain stability but ultimately could not overcome its financial challenges.
As part of the closure plan, all Party City stores in the United States, locallly in the region the company has additional stores in Redding, Woodland, Elk Grove, Sacramento, Citrus Heights, Roseville, Modesto, and Turlock, are expected to shut down by early 2025.
CEO Barry Litwin shared the news with corporate employees during a meeting on Friday, revealing that the company’s financial struggles had forced them to make the difficult decision to shut down over 800 stores nationwide. The closures will begin immediately as part of a “wind-down process” that will continue through February 28 of 2025.
“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 wind-down process immediately.”
On Friday afternoon, the Folsom store was operating as usual. Local management and staff declined to comment on the closure, and it is unclear what will become of the large retail space at 2780 East Bidwell Street in the Broadstone shopping center once it becomes vacant.
The closure of Party City adds to a growing list of retail shutdowns in the region. Other retailers, including Bed Bath & Beyond, Big Lots, Tuesday Morning, and select Walgreens locations, have also closed their doors in Folsom in recent months.
This year alone, U.S. retailers have announced 7,327 store closures and 5,919 store openings, according to a Coresight Research report. The number of closures represents a nearly 58 percent increase from the previous year, reflecting broader challenges faced by the retail industry as companies grapple with shifting consumer behavior, inflation, and even the lingering impact of the pandemic that forced closures.
