A fan-favorite retailer’s second bankruptcy is nearly complete. Now, a corporate conglomerate will own the specialty brand. 

Party City, the once-popular balloon, costume, and celebrations supply store, announced it has sold most of its assets as it winds down operations. 

The company auctioned its remaining intellectual property and wholesale operations to New Amscan, a company known for owning brands like Chia Pet and The Clapper.

Amscan, an affiliate of Ad Populum, supplies party supply products to major brands like Target and Amazon.

Meanwhile, Party City continues to sell off its fleet of store locations and leases. In December, the retailer announced that all 850 of its stores would close down.

Dollar Tree and Five Below bid on a significant number of Party City’s former store leases. 

The lease takeovers resulted in $14.5 million in gross proceeds for the bankrupt brand, with over 100 more former Party City store leases still available on the market.

Both auctions for store locations and intellectual property come after Party City’s years-long decline. 

Party City announced  in December it was closing all 850 stores 

Party City first entered bankruptcy in January 2023.

At the time, the brand reported sales declines as shoppers stopped throwing parties and social events during the COVID-19 pandemic lockdowns.

These pressures, along with inflation and reduced discretionary spending, further weakened the retailer’s position. 

Then, helium prices spiked, flattening profits for the brand’s iconic balloon business. 

Stock prices for the brand plummeted to around $0.40 before the first bankruptcy. 

The company emerged from the first bankruptcy in October 2023 after it shed nearly $1 billion in debt.

But sales trends in the market continued to shift away from the brand’s business model.  

Specialty chains like Spirit Halloween have chewed away at Party City’s seasonal dominance, while larger competitors such as Amazon and Target have expanded their party supply offerings. 

The party retailer struggled after helium prices spiked and customers turned their business to other retailers

Multiple brands placed bids on Party City’s remaining leases

Party City CEO Barry Litwin delivered the devastating news  to employees that the chain was shutting down during a video conference call

Both trends squeezed out retailers that relied on traditional brick-and-mortar sales. 

Eventually, slowing operations became the independent retailer’s death knell. Party City filed its second bankruptcy in December 2024.  

In a video call to employee’s, Party City’s final CEO said the store had to shut down despite employee’s ‘very best efforts.’

‘It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,’ Litwin added. ‘Unfortunately, it’s necessary to commence a winddown process immediately.’ 

Ad Populum, the owner of Amscan, now aims to transform the Party City and Amscan brands as it expands its presence in the party supply market.

The company also owns Rubies, a Halloween costumer designer and distributor, and Graceland, the museum dedicated to Elvis Presley’s legacy. 

 ‘We are excited to lead the transformation of the Party City and Amscan brands,’ Joel Weinshanker, Ad Populum’s CEO, said in a statement. ‘By combining our strengths in sourcing and distribution with Party City’s legacy, we are confident in our ability to innovate and grow in the party supply market, delivering products that inspire and elevate life’s celebrations.’