WOODCLIFF LAKE—The separation notice from human resources at 1 Celebration Square was brief and stark: Party City Holdings Inc. (“PCHI”) has made the difficult decision to conduct a mass layoff at its Woodcliff Lake headquarters, effective Dec. 20.
The layoff, affecting all of the company’s U.S. stores and ending a nearly 40-year run of operations, is expected to be permanent. In its message to employees, human resources said, “The expected date of the first separation will be Dec. 20, 2024. We regret to inform you that your position will be eliminated on Dec. 20, 2024.”
Employees were reminded that “PCHI does not have a job bumping system—that is, employees will not be able to displace more junior employees out of their job positions as a result of this mass layoff.” Inquiries were directed to the firm’s assistant general counsel.
According to CNN, CEO Barry Litwin informed corporate employees on Friday that Party City is “winding down” operations immediately, with Dec. 20 marking their final day of employment. Staff were reportedly told they would not receive severance pay, and their benefits would end as the company prepared to cease operations.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin reportedly said during a video conference call. He added, “It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome. Unfortunately, it’s necessary to commence a wind-down process immediately.”
Store-level employees received separate notifications indicating that all U.S. locations will close by Feb. 28, 2025, at which time store staff will be terminated. The letters expressed said, “Although Party City believes these closings are in the best interest of the company, we regret that we have had to take this step and thank you for your valued contributions and service.”
CNN also reported that HR chief Karen McGowan, addressing employees about the termination of benefits, broke down in tears during a video call, expressing regret over how, and when, the news was communicated.
Local Impact
The news hits Woodcliff Lake particularly hard. Mayor Carlos Rendo, who just three years ago celebrated the company’s relocation of its headquarters to the borough, expressed disappointment over the timing and manner of the layoffs.
“How do you do that in the middle of the holidays without advance notice to employees?” Rendo wrote on Facebook. “I hope that Party City works with its workforce for a smooth transition. Party City occupies a Class A building in Woodcliff Lake that is now going to be empty. We will lend our support, in any way possible, to the owners of the building to help attract a new business to occupy the property.”
Party City’s relocation to Woodcliff Lake in 2022 was initially met with optimism, much welcome in the shadow of the pandemic. In 2021, Rendo and the Borough Council worked to attract the company to the vacant ESAI building at 100 Tice Boulevard, highlighting the economic benefits. At the time, Rendo estimated the move would bring 300–400 jobs with salaries averaging in the mid-$90,000 range and a total workforce exceeding 700 employees.
The company received the first award under New Jersey’s Emerge Program, part of the Economic Recovery Act of 2020, which incentivized job creation and capital investment. Party City’s planned $25–$30 million capital investment was touted as a major win for the borough.
“We’re excited to bring Party City Holdings Inc. to Woodcliff Lake,” then-CEO Brad Weston said in 2021. “It’s essential that we provide our team with the right working environment… We anticipate the convenient location, inspiring environment, and our hybrid approach will support a modern way of working.”
A Brief History of Party City
Founded in 1986 by Steve Mandell in East Hanover, N.J., Party City grew from a single store into the largest retailer of party goods in North America. The company expanded through franchising and acquisitions, including Party America, Factory Card & Party Outlet, and iParty, while capitalizing on seasonal pop-ups such as Halloween City and Toy City. Its heavy focus on Halloween proved pivotal, contributing significantly to its profitability.
However, financial struggles began to mount, driven by changing consumer habits, competition, and pandemic-related challenges. In 2023, Party City filed for Chapter 11 bankruptcy but managed to eliminate over $1 billion in debt during restructuring. Despite these efforts, the company continued to face challenges and announced in late 2024 that it would close all U.S. operations. Canadian stores, owned by Canadian Tire, remain unaffected.