Party City

{{Infobox company

| name = New AmScan PC LLC

| logo = Party City.svg

| logo_size = 300px

| logo_alt =

| logo_caption =

| logo_padding =

| image = A Party City store in Chattanooga, Tennessee.jpg

| image_size =

| image_alt =

| image_caption = A Party City store in Chattanooga, Tennessee

| native_name =

| native_name_lang =

| romanized_name =

| former_name = Party City Holdco, Inc.

| type = Subsidiary

| parent = Canadian Tire (Canada only; 2019–present)
Ad Populum, LLC (United States) 2025-Present

| traded_as =

| industry = {{ubl|Retail|Manufacturing|Distribution}}

| genre = |

| defunct = {{End date and age|2025|2|28}} (independent/franchise owned stores still open)

| fate = Bankruptcy and liquidation as Party City Holdco Inc.
Acquired by New Amscan PC, LLC 2025|

| predecessor =

| successor = New Amscan PC, LLC 2025

| founded = {{start date and age|1986}}; in East Hanover Township, New Jersey, U.S.

| founder = Steve Mandell

| hq_location =

| hq_location_city = Woodcliff Lake, New Jersey (Original)

| hq_location_country = United States

| coordinates =

| num_locations = 29 (Independently/Franchised Owned - USA)
69 (Canadian Tire Owned - Canada)

| num_locations_year = 2025

| area_served = Worldwide

| products = Party supplies,
Halloween costumes

| brands = {{ubl|Party City|Halloween City|Toy City}}

| services = Specialty Retailer
Franchising

| owner =

| divisions = Retail
Consumer Products Group

| module =

| website = {{URL|partycity.com}}
{{URL|partycity.ca}}
{{URL|partycity.com.mx}}

| footnotes =

}}

New AmScan PC LLC formerly, Party City Holdco Inc.{{Cite web |title=Party City Holdings Inc - Company Profile and News |url=https://www.bloomberg.com/profile/company/1040664D:US |access-date=2023-12-29 |website=Bloomberg.com |language=en}} is an American chain of party supply stores founded in 1986 by Steve Mandell in East Hanover, New Jersey. Party City's headquarters are in Woodcliff Lake, New Jersey.{{Cite web |last=Redmond |first=Kimberly |date=2022-10-07 |title=Party City celebrates opening of new Woodcliff Lake HQ (updated) |url=https://njbiz.com/party-city-celebrates-opening-of-new-woodcliff-lake-hq/ |access-date=2023-12-29 |website=NJBIZ |language=en-US}} Party City was the largest retailer of party goods in Canada, Puerto Rico, and Mexico. Party City operates over 850{{Cite web |last=City |first=Party |title=Online Party Store with over 850 Store Locations |url=https://www.partycity.com/ |access-date=2023-12-29 |website=Party City |language=en}} company-owned and franchise outlets in over 70 countries around the world under the Party City, Halloween City, Toy City, Factory Card and Party Outlet brands.{{Citation needed|date=December 2024}} In December 2024, Party City filed for Chapter 11 bankruptcy,{{Cite web |last=Ma |first=Dorothy |date=December 21, 2024 |title=Party City Files for Bankruptcy a 2nd Time in Retail Déjà Vu |url=https://www.bloomberg.com/news/articles/2024-12-21/party-city-files-for-bankruptcy-a-second-time-in-retail-deja-vu |access-date=December 21, 2024 |website=Bloomberg |language=en}} laid off all administrative employees,{{Cite web |date=2024-12-21 |first=Faris|last=Tanyos|title=Party City files for bankruptcy, a day after announcing mass layoffs at its headquarters|url=https://www.cbsnews.com/news/party-city-files-for-bankruptcy/ |access-date=2024-12-22 |website=CBS News|language=en-US}} and announced they would liquidate and close most remaining stores in the United States.{{Cite web |last=Murphy |first=Aislinn |date=2024-12-20 |title=Party City going out of business after 40 years |url=https://www.foxbusiness.com/retail/party-city-going-out-business-after-40-years |access-date=2024-12-20 |website=FOXBusiness |language=en-US}} As of 2025, stores not operated by Party City Holdco, such as those in Canada, Puerto Rico, and Hawaii, were unaffected and continue to operate.

Retail History

Party City was founded by Steve Mandell in 1986. Mandell recognized that the market for party goods was highly fragmented, with many small mom-and-pop operations. He noticed that a large number of retailers carried limited supplies. Additionally, he saw that many big players were trying to dominate the party goods market. After scraping together $125,000, Mandell opened a {{convert|4,000|sqft}} store in East Hanover, New Jersey, naming it Party City. The operation was immediately successful, and within a year, Mandell began planning for a second location. He also began to hear from people asking to franchise the Party City concept, and as a result, Party City began its evolution into a national chain. After his first year in business, Mandell also decided to concentrate on Halloween. In 1987, over a quarter of his store was turned into a "Halloween Costume Warehouse". The move proved highly successful and led to Party City's ongoing focus on the holiday, and the major impact that the month of October would have on Party City's bottom line. Year-round, Party City stocked an inventory of Halloween costumes for no reason other than to make customers aware of the items for the next Halloween season.{{cite web|title=Party City Corporation History|url=http://www.fundinguniverse.com/company-histories/party-city-corporation-history/|website=Funding Universe|access-date=17 April 2015}} One quarter ($560 million) of Party City's 2015 revenue came from Halloween; Halloween City operated about 300 Halloween City pop-up stores.{{Cite news |url=https://www.bloomberg.com/features/2016-halloween-pop-up-shops/ |title=How Halloween Stores Conquered America |last1=Clark |first1=Patrick |date=2016-10-27 |work=Bloomberg |access-date=2019-02-13 |last2=Mosendz |first2=Polly}} Party City started franchising stores in 1989, with the first franchise store located in Hazlet, New Jersey.{{cite web|title=Party City Holdings Inc. Press Kit|url=http://www.partycity.com/images/set_c/en_us/local/page_specific/press_center_app/Party_City_2015_Press_Kit.pdf|publisher=Party City|access-date=17 April 2015|date=January 2015|archive-date=20 March 2015|archive-url=https://web.archive.org/web/20150320025538/http://www.partycity.com/images/set_c/en_us/local/page_specific/press_center_app/Party_City_2015_Press_Kit.pdf|url-status=dead}} By 1990, Mandell also owned four Party City stores. At this point, he incorporated the business as a franchising operation, with his stores forming the core of the chain. By the end of 1990, Party City outlets numbered 11; five more franchised stores were added in 1991, 16 in 1992, and another 26 in 1993, bringing the total to 58. Party City was now a nationwide chain with store locations ranging from Hawaii to Puerto Rico. Party City's annual revenues in 1993 topped $2.4 million and net profits approached $235,000. During these first four years of operation, Mandell refined the Party City concept, including store design, product mix, choice of suppliers, and the implementation of systems. In late 1993, with a successful store model in hand, Mandell decided to de-emphasize franchising in favor of opening company-owned stores, which would generate greater returns for the corporation than it could receive on fees and royalties from franchised outlets, as well as allow Mandell to better control the destiny of Party City. While franchisees might maintain tighter inventory control, Mandell insisted that company-owned units would be amply stocked with a wide range of merchandise.

File:Party City Rockaway, NJ (49671481816).jpg]]

In 2005, Party City was sold to a subsidiary of AAH Holdings Corporation, owner of Amscan, a designer, manufacturer, and distributor of party goods in America.{{cite web|title=Acquisition of Party City Corporation by AAH Holdings Completed|url=http://www.amscan.com/in_the_news/amscan/press_releases/by:latest/acquisition-of-party-city-corporation-by-aah-holdings-completed/|website=Press Releases|publisher=Amscan Holdings|access-date=17 April 2015|archive-date=17 April 2015|archive-url=https://web.archive.org/web/20150417194642/http://www.amscan.com/in_the_news/amscan/press_releases/by:latest/acquisition-of-party-city-corporation-by-aah-holdings-completed/|url-status=dead}} Amscan then went on to acquire the party retailers Party America in 2006 and Factory Card & Party Outlet in 2007. Both retail chains began to operate under the Party City network, thereby making Party City the largest party supplies retailer in the United States.{{cite web|date=September 29, 2006|title=Party America, a Leading Party Goods Retailer, Acquired by AAH Holdings Corporation|url=http://www.amscan.com/in_the_news/amscan/press_releases/by:latest/party-america-a-leading-party-goods-retailer-acquired-by-aah-holdings-corporation/|website=Press Releases|publisher=Amscan Holdings|access-date=17 April 2015|archive-date=17 April 2015|archive-url=https://web.archive.org/web/20150417193222/http://www.amscan.com/in_the_news/amscan/press_releases/by:latest/party-america-a-leading-party-goods-retailer-acquired-by-aah-holdings-corporation/|url-status=dead}} With Amscan's 2011 acquisition of American Greetings' Designware party division, Party City added licensing agreements with Nickelodeon, Sesame Workshop, and Hasbro.{{cite web |date=December 22, 2009 |title=Amscan Announces Strategic Alliance With American Greetings |url=http://www.amscan.com/in_the_news/amscan/press_releases/by:latest/amscan-announces-strategic-alliance-with-american-greetings/ |url-status=dead |archive-url=https://web.archive.org/web/20150926182941/http://www.amscan.com/in_the_news/amscan/press_releases/by:latest/amscan-announces-strategic-alliance-with-american-greetings/ |archive-date=26 September 2015 |access-date=17 April 2015 |website=Press Releases |publisher=Amscan Holdings}} In 2011, Amscan became a licensee for MLB, NBA, NFL, NHL, and NCAA party products and balloons, with Party City carrying all teams in their respective markets and offering the entire assortment in larger stores and online.{{cite news|last1=Lefton|first1=Terry|title=Party time|url=http://www.sportsbusinessdaily.com/Journal/Issues/2012/05/28/In-Depth.aspx|access-date=17 April 2015|work=Street & Smith's Sports Business Journal|agency=American City Business Journals|date=3 June 2012}} In 2011, Party City expanded outside the United States with the acquisition of the Canadian retailer Party Packagers, making Party City the largest party goods retailer in North America. In 2012, these stores began to re-brand as Party City. In 2013, Party City bought iParty.{{Cite news |last=Reidy |first=Chris |date=2013-03-01 |title=iParty agrees to be acquired by Party City |url=https://www.boston.com/uncategorized/noprimarytagmatch/2013/03/01/iparty-agrees-to-be-acquired-by-party-city |access-date=2019-01-27 |work=Boston.com |language=en-US}} In December 2017, Party City acquired MG Novelty Corporation for about $5.5 million; that Party City operated seven retail stores under the name Party Galaxy in the Oklahoma City metropolitan area.{{Cite web|url=https://www.businesswire.com/news/home/20171219005143/en/Party-City-Acquires-Party-Galaxy|title=Party City Acquires Party Galaxy|date=2017-12-19|website=www.businesswire.com|language=en|access-date=2019-01-27}} In 2017, Party City purchased its franchised locations in the Carolinas.{{cite news |last1=Hirsch |first1=Lauren |title=U.S. retailer Party City explores sale -sources |url=https://www.reuters.com/article/us-party-cty-holdco-m-a-idUSKBN17T2PD |access-date=July 18, 2019 |work=Reuters |date=April 27, 2017 |language=en}} In 2012, Advent International, Berkshire Partners LLC, and Weston Presidio sold a majority stake in Party City to Thomas H. Lee Partners. In 2015, Party City Holdco Inc. went public, with Thomas H. Lee Partners retaining 55% and Advent International owning 19 percent. In April 2017, a private equity firm approached Party City to acquire it. In response, Party City placed itself on the market.

File:Storefront_in_Fresno.jpg|236x236px]]

In June 2018, Party City announced that it would open around 50 Toy City pop-up stores beginning in September 2018, alongside its Halloween City stores. The stores operated through the conclusion of the holiday season and were meant to capitalize upon the closure of the U.S. locations of Toys "R" Us. Some of its locations used vacancies created by the Toys "R" Us shutdown.{{Cite web |last=Duhart |first=Bill |date=6 September 2018 |title=Toy City pop-up stores will fill former Toys R Us, Babies R Us locations |url=https://www.nj.com/news/index.ssf/2018/09/toy_city_popup_stores_will_fill_6_former_nj_toys_r.html |access-date=2018-12-22 |website=NJ.com |language=en-US}}{{Cite news |last=Wahba |first=Phil |date=June 25, 2018 |title=Party City joins the list of retailers feasting on Toys 'R' Us remains |url=http://fortune.com/2018/06/25/party-city-toys-holiday/ |access-date=2018-07-13 |work=Fortune |language=en}}{{cite web|url=https://www.cnbc.com/2018/06/25/party-city-to-open-toy-city-stores-in-wake-of-toys-r-us-demise.html|title=Party City to open Toy City stores in wake of Toys R Us' demise|first=Lauren|last=Thomas|website=CNBC |date=25 June 2018|access-date=26 June 2018}} In May 2019, Party City announced that it would close 45 locations "to help optimize our market-level performance, focus on the most profitable locations, and improve the overall health of our store portfolio".{{Cite web |last=Merrett |first=Robyn |date=May 11, 2019 |title=Party City CEO Says Closure of 45 Stores Is 'Completely Unrelated' to Helium Shortage |url=https://people.com/human-interest/party-city-closing-stores-helium-shortage/ |access-date=2019-05-11 |website=People.com |language=en}} In August 2019, Party City's Canadian operations were acquired by Canadian Tire for $174.4 million CAD.{{cite news |url=https://www.ctvnews.ca/canada/canadian-tire-buys-up-party-city-for-174-4-million-1.4540978 |title=Canadian Tire buys up Party City for $174.4 million |last=Rodriguez |first=Jeremiah |publisher=CTV News |date=2019-08-08 |access-date=2019-08-08}} On January 17, 2023, Party City Holdco Inc. filed for Chapter 11 bankruptcy, weighed down by a confluence of factors including the COVID-19 pandemic and changing consumer behaviors.{{cite news |last1=Jodi Xu Klein, Soma Biswas and Alexander Gladstone |title=Party City Plans Bankruptcy Filing Within Weeks |url=https://www.wsj.com/articles/party-city-plans-bankruptcy-filing-within-weeks-to-cut-debt-11673023619 |access-date=17 January 2023 |publisher=Walt Street Journal |date=6 January 2023}}{{Cite news |last=Pollard |first=Amelia |last2=Hill |first2=Jeremy |date=2023-01-17 |title=Party City files for bankruptcy after pandemic recovery falters |url=https://www.bloomberg.com/news/articles/2023-01-18/party-city-files-for-bankruptcy-after-pandemic-recovery-falters |access-date=2023-01-18 |newspaper=Bloomberg}} The move was part of an attempt to restructure and reduce Party City's debt. Party City secured $150 million in financing to keep its stores open and operations running. Party City said that the move would help it complete an "expedited restructuring" to reduce its debt, which should be done by the second quarter of 2023. On September 6, 2023, Party City officially announced they had completed their bankruptcy reorganization after a US judge approved their bankruptcy plans. Party City was able to eliminate over $1 billion of debt during the reorganization. Most of its stores were expected to stay open until 2025; however, a handful of its 800 stores had permanently shuttered by the end of 2023, notably underperforming and less productive locations, and stores in underdeveloped and obsolete areas.{{Cite web|url=https://www.cnn.com/2023/09/07/business/party-city-exits-bankruptcy/index.html|title=The majority of Party City stores will stay open as it exits bankruptcy|date=September 7, 2023|access-date=September 9, 2023|website=CNN|language=en}}

{{multiple image

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|align=right

|image1=Exterior of Party City store on the last day of operation.jpg

|alt1=Exterior of the Party Pity store on the last day of operation

|image2=Interior of Party City store on last day of operation.jpg

|alt2=Interior of the Party Pity store on the last day of operation

|footer=Exterior (top) and interior (bottom) of the Party City store on the last day of operation in West Los Angeles (March 27, 2025)

}}

In December 2024, Party City warned that it would be preparing to file for bankruptcy for the second time in two years, as it was running out of cash to continue operating at several of its locations. Party City announced that it would close all of its corporate-owned US stores by February 28, 2025, as part of a winding-down procedure. Franchised locations not owned by Party City, as well as Canadian locations, will remain open, the latter of which is currently owned by Canadian Tire.{{Cite web |url=https://www.khon2.com/top-stories/hawaii-party-city-stores-to-remain-open-despite-national-closures/ |title=Hawaii Party City stores to remain open despite national closures |last=Lopez |first=Lucy |date=December 20, 2024 |website=KHON-TV|access-date=December 26, 2024}}{{Cite web |url=https://www.click2houston.com/news/local/2024/12/23/we-are-excited-to-continue-the-party-these-2-houston-area-party-citys-will-stay-open-despite-corporate-shutdown/ |title='We are excited to continue the party': These 2 Houston-area Party City's will stay open despite corporate shutdown |last=Saavedra |first=Ninfa |date=December 23, 2024 |website=KPRC-TV|access-date=December 26, 2024}}{{Cite web|url= https://edition.cnn.com/2024/12/20/business/party-city-shut-down/index.html|title= Party City is going out of business|date=December 20, 2024|access-date=December 20, 2024|last1=Abbassi|first1=Emmy|last2=Valinsky|first2=Jordan|website=CNN|language=en}} On December 24, 2024, Party City reported that Mitch Modell, former CEO of Modell's Sporting Goods, was looking to buy Party City in an effort to save thousands of jobs. Modell planned to release financing sheets by the end of that week, but nothing further has been announced as of January 2025.{{Cite web |last=Indursky |first=Jake |date=December 24, 2024 |title=Mitch Modell looks to buy Party City, Big Lots |url=https://therealdeal.com/national/2024/12/24/mitch-modell-aims-to-buy-retailers-party-city-and-big-lots/ |access-date=January 25, 2025 |website=The Real Deal |language=en}} Party City auctioned off leases for nearly 700 store locations across 45 states. By early 2025, these auctions had generated around $14.5 million. Among the top bidders for these store leases were Dollar Tree, which secured 150 leases, and Five Below, which acquired 40. Other participants in the bidding included Barnes & Noble, La-Z-Boy, and Rack Room Shoes. In addition to the physical assets, the intellectual property and wholesale business operations of Party City were sold to an affiliate of Ad Populum for $20 million. Ad Populum, known for products like the Chia Pet and The Clapper, now holds the rights to continue Party City's tradition in party goods manufacturing under the newly formed company New Amscan.{{cite web |last=Delesline III |first=Nate |date=2025-02-11 |title=Party City IP, wholesale operations to be acquired for $20M |url=https://www.retaildive.com/news/party-city-intellectual-property-store-leases-amscan-wholesale-acquired-bankruptcy-auction/739651/ |access-date=2025-02-13 |website=Retail Dive}}

As of June 2025, [https://PartyCity.com PartyCity.com] in the United States is back online and fully operational under new ownership. The website has resumed accepting orders and is open for business.