A Party City worker shared surprising news about the retailer in a now-viral video.
In the clip uploaded by user @deliverwithvee, the worker warned that the company may be in financial hot water.
Which means many workers may be in danger of being laid off.
“Guess who’s going to be jobless in less than 2 months after filing bankruptcy for the 2nd time,” the text overlaid on the clip read.
Is Party City filing for bankruptcy?
According to Bloomberg Law, Party City is preparing to file for bankruptcy “as soon as this month.”
The cash-strapped company has been struggling to keep up with rent payments in some locations.
It plans to sell all of its stores and shut down all operations.
CNN reported that the company’s CEO, Barry Litwin, broke the news to corporate employees during a meeting on Friday. The company also reportedly told workers Friday would be their last day of work and they will not receive severance pay.
They would also cease worker benefits once the company is closed.
In January 2023, the party store first declared bankruptcy. It was able to exit bankruptcy by canceling nearly 1 billion in debt.
However, it still had an 800-million debt burden to overcome.
After 40 years in business as America’s largest party supplies retailer, it is now clear the company will not be able to do so.
Closing shocks employees
All corporate employees in the company were reportedly sent home on Dec. 10.
The following day, security locked the company’s headquarters doors and the company instructed them not to let anyone without a badge in.
As of 2021, the company had approximately 6,400 full-time and 10,100 part-time workers.
These workers have now become unemployed as the holidays approach.
Viewers respond
In the video’s comments section, many complained that the company’s prices were outrageous.
“I paid $34 for two large number balloons! At party city… That’s insane!!!” user @victoriacervantes1111 commented.
“Well tbh its has gotten more expensive. Ppl go to dollar tree more even Amazon,” user @Arleneee wrote.
@deliverwithvee All 700+ stores will be closing #partycity #partycityclosing #atleastitemswillgoonsaletomorrow #fyp #bankruptcy #debt #jobless #lmaoimgoingtocry ♬ Scott Street (Slowed Down) – Phoebe Bridgers
Nevertheless, some offered the worker words of support.
“Party city just isn’t in touch with society anymore for their prices to me like that. I am so sorry tho , I hope things get better!” user Jordyn Starling said.
The Daily Dot reached out to Party City via email and the TikToker by TikTik comment and direct message for comment.
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