Popular Retailer in Maine Announces All Locations Will Close in 2025

This retailer has been a staple for party and holiday planning for nearly 40 years, but all of their stores, including those in Maine, are closing.

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It's always sad to hear when a business announces it's closing, as it impacts not just the employees but also the customers and neighboring businesses that relied on it. Unfortunately, in 2024, these announcements have become all too common, reflecting the challenges many face today.

So, which retailer with several locations in Maine has announced they are shutting down?

Party City is closing all of its stores, marking the end of nearly 40 years in business, CNN reports. In a video conference call, CEO Barry Litwin informed employees that operations would cease immediately, with staff losing their jobs and benefits without severance pay. Litwin attributed the company's collapse to financial challenges worsened by inflation, which raised costs and reduced consumer spending.

Party City, which operates two locations in Maine—in Bangor and South Portland—has announced that the company is going out of business.

Party City announced it will begin winding down operations immediately, with some stores closing by the end of February, and employees being let go. Despite exiting bankruptcy in 2023 and reducing its debt by nearly $1 billion, the company still struggled with over $800 million in remaining debt and declining earnings. CEO David Litwin, who took the role just four months ago, emphasized efforts to save the company but acknowledged the closures were necessary to address its financial challenges.

Unfortunately, 2024 has been a landmark year for layoffs, closures, and businesses shutting their doors for good.

The rising cost of living has pushed customers to cut back on non-essential spending, leading to a wave of retailer bankruptcies this year. Notably, Big Lots announced it is closing all its locations with ‘going out of business’ sales after a failed rescue deal, contributing to what could be a record year for store closures since 2020, according to Coresight Research.

And there you have it: Party City will be going out of business, as confirmed by the company on the Friday before Christmas.

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