The Party City Liquidation: Lessons from the Retail Market

2024 ended with surprising news—Party City filed for bankruptcy for the second time in under 2 years. This time, however, it was liquidating. On December 21, 2024, Party City filed for Chapter 11 bankruptcy, looking to liquidate its assets. This happened after the company sent home all of its employees nationwide on December 10, 2024 and closed its corporate headquarters in New Jersey to everyone but executives on December 11, 2024. The resultant liquidation plan seeks to close all Party City locations by this February.

Retail Real Estate Is Thriving, But How?

Picture it, the year is 2023. Any and every item that can be bought sold can be accesses via the Internet from the comfort of one’s own home. For over seven years, the number of stores in existence has steadily declined. The economy is experiencing the perfect storm of rampant inflation and recessionary forces. Despite all of this, retail real estate vacancy nationwide is 5.4% and retail is thriving. Let’s take a look at why.