Party City is closing

Party City is closing all of its stores, including the one on Leesburg Pike in Bailey’s Crossroads.

After filing for Chapter 11 bankruptcy, Party City Holdco Inc. is carrying out a “wind down” of its 748 stores nationwide, which it expects to complete by Feb. 28.

Meanwhile, everything is on sale with discounts up to 50 percent. With inventory shrinking fast, it’s a good time to stock up on party supplies for the Superbowl, Valentine’s Day, and other upcoming events.

Deals listed on the Party City website include a Grinch suit and an elf costume for adults both marked down from $40 to $20 and a New Year’s Eve party kit reduced from $114.99 to $91.99.

PCHI says the decision to close its stores “was made following exhaustive efforts by the company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors.”

The bankruptcy proceedings, in the U.S. Bankruptcy Court for the Southern District of Texas, “follow the company’s 2023 restructuring through which PCHI eliminated nearly $1 billion in debt, among other things,” Party City states. “As with many other retailers, macroeconomic headwinds more recently proved too severe for the company to overcome.”

PCHI says it is retaining more than 95 percent of its 12,000 employees to assist with the wind-down process.

Other nearby Party City stores are on Loisdale Road in Springfield and Fairfax Boulevard in Fairfax.