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arty City, the largest party supply retailer in the US, is shutting down all 850 of its stores across 45 states and Puerto Rico. The closures are expected to be completed by February 1, leaving millions of square feet of retail space vacant. In Texas alone, around 756,000 square feet will be left empty across 63 locations.

    The company's financial struggles have been ongoing for years, despite efforts to restructure and cut costs. Party City emerged from Chapter 11 bankruptcy protection in October 2023 but was unable to compete with e-commerce giants and dollar stores that offer party supplies at lower prices.

    This move comes as the retail industry continues to grapple with shifting consumer behavior and the aftermath of the pandemic. Landlords will now face the challenge of finding new tenants or reimagining these large-format spaces. Party City's announcement follows a similar move by discount retailer Big Lots, which plans to close nearly 1,000 stores after a failed private equity sale.