The party might not be over for everyone at Party City, as some franchisee locations across the U.S. are expected to remain open.
Nearly 900 locations were in operation when the sudden news broke that Party City was going out of business. On Dec. 21, Party City filed in the U.S. Bankruptcy Court for the Southern District of Texas, after already emerging from a previous bankruptcy in 2023 with about $1 billion less in debt.
But nine franchises that collectively own 29 Party City stores plan to remain open despite the closure of hundreds of stores. Anisa Patel, who co-owns two Party City stores with her mother and father in the Austin area, told USA TODAY all franchisees are working together to stay afloat.
“We’re all in this together, were in contact with them,” Patel said. “We’ve all kind of been thrown in this together, we’re having to rebuild on our own so we’re banding together.”
For her, the writing was on the wall for Party City, as she said the company had implemented markdowns on products back in October. But following the announcement of the bankruptcy, she feels that franchisees have been left in the dark.
“They have not communicated with us at all, there’s not been a letter,” Patel said. “This is our livelihood.”
“The nine franchisees are sticking together and talking to each other each day and sharing resources,” Steve Fram, owner of two Party City locations in Virginia, told Richmond BizSense.
And as for keeping the name of Party City, Fram told the outlet they’ll stick with it, “at this point.”
