Party City Goes Bankrupt: Employees Given Nothing
No severance & no warning for the frontline
“I’m so scared.”
Her voice was soft and low. We heard it in the background of her TikTok. She recorded the entire Party City layoff call on Friday, December 20, 2024, and uploaded it. The video is the full call on her laptop. She recorded it with her phone.
Five days before Christmas, Party City laid off its US-based staff. The Canadian part of the company is under different ownership.
The employees did not get severance or a two-week notice. They got immediate termination and their final paycheck. Their benefits may last until the end of the month (I’ve heard conflicting accounts).
But as of now, they are on their own.
Try to find a new job during the week of Christmas.
Also, the current job market is garbage.
“A multi-billion dollar company that we all killed ourselves working for just threw us to the curb.” - Party City corporate employee Hebah on TikTok.
She’s right.
But why?
Here’s what is being reported.
Party City, the mega-celebration store, is closing all 850 US-based stores. February 1, 2025, is the final deadline for closing the business. The company hired retail consultants Hilco Global to assess its inventory's value. This was to secure more funding.
Hilco’s initial report was not good. It stated that the value of Party City’s inventory had been “dramatically slashed” compared to previous appraisals.
Lenders wanted the company to reserve $50 million as a safety net. They managed to do that until December 10th. Then, their cash reserves fell below that mark. The lenders then forced the closure of the business before the holiday season and new year to “maximize the proceeds of sales for the benefit of all stakeholders.”
For the benefit of all stakeholders
I mean, what other reason could there be, right?
Stakeholders.
The pandemic hit Party City hard. No one was partying when the world shut down and social distancing was mandated. There were supply chain issues, increased competition, and a helium shortage.
If you want to dig into more of the details about private equity and leveraged buyouts from Vice - you can do that right here.
But I want to talk about the people in stores.
The people in stores had a job one day, and the next day they didn’t.
They had healthcare one day, and the next they didn’t.
They had regular customers and a team with whom they worked with daily.
Now, they don’t.
In the last ten days of the year, they got nothing.
Corporate employees were allowed to keep their laptops. That’s it.
No severance. No PTO cash out. No nothing.
Thanks for working your guts out, though. Bye.
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Layoffs are never easy, but this one seemed extra brutal. The company shut down five days before Christmas so they could ensure their stakeholders receive a maximum pay day.
“People in the stores are still working until February 28th and had one reminder before they even announced the layoffs. It was a reminder of the company’s media policy!!!! After the 28th, I’m pretty sure you will hear some very sad and enlightening stories. Most of the managers were with this company more than 10 yrs. Myself 20 yrs.” - Former Party City manager
To all of you surviving these layoffs, I am so sorry.
You will get through this, but this is harsh.
Get some rest if you can. Lean on your community. Then you can get back to kicking ass.
We see you, and we are with you.
If you’re on LinkedIn, hit me up and I’ll get the word out for you. We can shout out everyone who has been affected and hopefully help you find your next job.
This isn’t the end for you. It’s a detour.
And to all the mega-corps out there: do better.
Set aside some money to take care of people, huh?
Kit Campoy is an author and retail expert with two decades of experience leading retail teams. Today, she freelance writes for world-class SaaS Retail Tech companies.
This was harsh in the extreme. Is there nothing in corporate ethics that EVER considers helping those that work for them?? It seems more and more evidence piles up every day to say no.
Thanks for giving these workers support.
Reminiscent of the closure of Charming Charlie! So sad for everyone involved.