Party City has begun shutting down locations after filing for Chapter 11 bankruptcy on January 17, as reported by The Dallas Express.
Party City has 826 U.S. stores, with 85 in Texas. The company has 25 locations in the Dallas-Fort Worth area alone. Bankruptcy law allows companies to get out of leases that are expensive or for underperforming stores, according to The Dallas Morning News.
The company has asked the court to reject 28 store leases, with two located in Texas.
With many retailers struggling, the Texas retail industry has remained relatively intact due to the state’s strong economy, which is leading the country in job gains, The Dallas Morning News reported.
Macy’s and JCPenney both announced the closing of stores recently, but none of them were located in Texas, according to The Dallas Morning News. Texas added 650,100 jobs in 2022 — more than any other state — according to the U.S. Bureau of Labor Statistics.
“It is no surprise that Texas leads the nation for job creation, adding more jobs in 2022 and growing at a faster rate than any other state,” said Governor Greg Abbott.
“Freed from the burden of over-taxation and the stranglehold of over-regulation, businesses continue to invest in Texas and in the best workforce in America. As a result, more Texans are working than ever before, putting even more Texas families on the path to prosperity,” Abbott argued. “Texas works when Texans work, and in this legislative session, we will continue expanding opportunity and ensuring Texas remains the best state to live, work, build a business, and raise a family.”
Party City’s stock was halted two weeks ago due to the bankruptcy announcement but has since restarted trading. Shares are currently trading at 13 cents.
Party City went public at $17 per share in 2015. The company has since been delisted from the New York Stock Exchange after falling under the minimum $1 per share price for 30 days.
A record number of stores were closed during the pandemic and government-imposed shutdowns, with many retailers filing for bankruptcy and being liquidated.
Notable companies like GNC, Chuck E Cheese, Guitar Center, JCPenney, J.Crew, Pier 1, Neiman Marcus, Tailored Brands, and Stein Mart all filed for Chapter 11 bankruptcy during the pandemic and shutdowns, according to AARP.
