DOWNEY — Party City, the nation's largest party supply retailer, announced today that it is closing all of its stores after nearly 40 years in business. CEO Barry Litwin informed employees that the company would cease operations immediately, with employment and benefits ending today.

This decision impacts the Party City store located at Downey Landing. Previously, Downey had two Party City locations, but the store at 7171 Firestone Blvd closed last year as part of the company's earlier restructuring efforts.

Party City has faced significant financial challenges in recent years, including a drop in earnings from $118.5 million in 2019 to $2.4 million by the third quarter of 2022. The company filed for Chapter 11 bankruptcy protection in January 2023 and closed several store locations during the restructuring process.

Despite efforts to stabilize, including exiting bankruptcy in September 2023 with a plan that canceled nearly $1 billion of debt, the company continued to struggle amid high inflation and reduced consumer spending. These challenges ultimately led to the decision to wind down operations and close all remaining stores.

The closure of the Downey Landing store marks the end of Party City's presence in the Downey community, where it has been a go-to destination for party supplies, balloons, and costumes.