Party City
| Company type | Private |
|---|---|
| Industry | Retail (party supplies) |
| Predecessor | Party City Holdco Inc. |
| Founded | 1986 |
| Founder | Steve Mandell |
| Defunct | 2025 |
| Fate | Bankruptcy and liquidation of most U.S. stores; continued operations outside the U.S. |
| Headquarters | Woodcliff Lake, New Jersey , United States |
Area served | Worldwide (over 70 countries) |
| Products | Party supplies, party goods, Halloween items, toys, greeting cards |
| Parent | Ad Populum (for intellectual property and wholesale operations) |
New AmScan PC LLC, previously known as Party City Holdco Inc., is a U.S.-based chain specializing in party supplies, established in 1986 by entrepreneur Steve Mandell in East Hanover, New Jersey. The company’s main office is located in Woodcliff Lake, New Jersey. Party City held the position as the leading party goods retailer across Canada, Puerto Rico, and Mexico. It manages over 850 locations worldwide, including both company-owned and franchised stores, operating in more than 70 countries under various brand names such as Party City, Halloween City, Toy City, Factory Card, and Party Outlet.
In December 2024, Party City initiated Chapter 11 bankruptcy proceedings, terminated its entire administrative workforce, and disclosed intentions to liquidate and shut down the majority of its U.S.-based outlets. Nevertheless, as of 2025, stores outside the United States—operated independently from Party City Holdco—such as those in Canada, Puerto Rico, and Hawaii, continued to operate.
Retail History
Steve Mandell founded Party City in 1986 after recognizing that the party supply market was fragmented with numerous small retailers and only a few major competitors. Starting with $125,000 in capital, Mandell launched a 4,000 square foot store in East Hanover, New Jersey. The business rapidly expanded and began franchising by 1989. By 1993, Party City had grown to encompass 58 stores nationwide with revenues surpassing $2.4 million. Mandell later prioritized company-owned locations to gain greater operational control and improve profitability while focusing on offering a wide range of products and maintaining robust inventory levels.
In 2005, AAH Holdings Corporation—owner of Amscan, a prominent manufacturer and distributor of party goods—acquired Party City. Through acquisitions such as Party America (2006) and Factory Card & Party Outlet (2007), Amscan broadened Party City's market dominance to become the largest party supplies retailer in the United States. The purchase of American Greetings' Designware division in 2011 brought valuable licensing partnerships with brands like Nickelodeon, Sesame Workshop, and Hasbro. That same year marked the company's entry into Canada by acquiring Party Packagers, which was subsequently rebranded under the Party City name. Further expansion included acquiring iParty in 2013; MG Novelty Corporation (operating Party Galaxy stores) in 2017; and franchised locations within the Carolinas.
In 2012, private equity firms Advent International, Berkshire Partners LLC, and Weston Presidio sold a controlling interest to Thomas H. Lee Partners. Party City went public in 2015 while Thomas H. Lee Partners maintained majority ownership. By 2017, amid private equity acquisition interest, Party City placed itself on the market.
To take advantage of the Toys "R" Us shutdowns, Party City introduced approximately 50 Toy City pop-up stores in 2018 alongside Halloween City outlets. In 2019, it shuttered 45 low-performing stores to enhance profitability. That year also saw Canadian Tire acquire Party City's Canadian division for CAD $174.4 million.
On January 17, 2023, Party City Holdco Inc. filed for Chapter 11 bankruptcy due to pandemic-related challenges and evolving consumer preferences. The restructuring plan included securing $150 million in financing to sustain operations while targeting a reduction of over $1 billion in debt by mid-2023. By September that year, the bankruptcy process concluded with most of its roughly 800 stores projected to remain open through 2025; however, several underperforming outlets were closed.
In December 2024, Party City revealed plans to close all corporate-owned U.S. stores by February 28, 2025; franchised locations along with Canadian stores under Canadian Tire ownership were set to continue operating. Mitch Modell, former CEO of Modell's Sporting Goods, showed interest in acquiring the company to save jobs but no agreement was reached by early 2025.
Party City auctioned nearly 700 U.S. store leases spanning 45 states and raised approximately $14.5 million; key bidders included Dollar Tree (acquiring around 150 leases) and Five Below (about 40 leases). The company’s intellectual property and wholesale operations were sold for $20 million to an Ad Populum affiliate that now runs the party supplies business under New AmScan.
By June 2025, PartyCity.com resumed full U.S. operations under new ownership while maintaining its role within the party supply sector.
See also
- List of private equity owned companies that have filed for bankruptcy
- List of retailers affected by the retail apocalypse
External links
- Articles with short description
- Party stores of the United States
- American companies established in 1986
- American companies disestablished in 2025
- Retail companies established in 1986
- Retail companies disestablished in 2025
- 2015 initial public offerings
- Woodcliff Lake, New Jersey
- Companies based in Bergen County, New Jersey
- Companies formerly listed on the New York Stock Exchange
- 1986 establishments in New Jersey
- 2025 disestablishments in New Jersey
- Companies that filed for Chapter 11 bankruptcy in 2023
- Companies that filed for Chapter 11 bankruptcy in 2024
- 5
- Companies of the United States by year of establishment