Party City Closing All Locations, Including 10 San Diego Stores

After nearly four decades as a go-to destination for party supplies, Party City is officially closing its doors nationwide, marking the end of an era for the country's largest party supply retailer. This closure includes all 10 San Diego County locations, leaving local shoppers to bid farewell to the brand that has long provided affordable options for celebrations and events.

CEO Barry Litwin announced the decision during a video conference call with employees, citing the company's inability to overcome significant financial challenges. According to reports, Party City struggled with inflation, a decline in consumer spending, and a substantial debt load that proved insurmountable. Employees were informed that all stores will shut down by February 28, and most corporate staff were terminated immediately without severance pay.

Party City first filed for Chapter 11 bankruptcy in January 2023, emerging from the process later that year after canceling nearly $1 billion of its $1.7 billion debt. Despite these efforts, the company remained burdened with over $800 million in liabilities, which continued to erode its profitability. Under Litwin’s leadership, which began in August 2024, the company attempted to stabilize operations but ultimately could not sustain its business.

In San Diego, Party City operates ten locations that have been a staple for party planners and decorators alike. These stores are located at:

• Loma Square: 3309 Rosecrans Street Suite A, San Diego, CA 92110
• Rio San Diego Plaza: 8330 Rio San Diego Drive, San Diego, CA 92108
• Target Center: 40 North 4th Avenue Suite 120, Chula Vista, CA 91950
• Genesee Plaza Shopping Center: 4251 Genesee Avenue, San Diego, CA 92117
• Palomar Trolley Center: 624 Palomar Street, Chula Vista, CA 91911
• Otay Ranch Town Center: 2015 Birch Road, Chula Vista, CA 91915
• Santee Trolley Square: 9850 Mission Gorge Road, Santee, CA 92071
• Carmel Mountain Road: 11465 Carmel Mountain Road, San Diego, CA 92128
• Promenade Shopping Center: 1109 W Valley Parkway Suite A, Escondido, CA 92029
• Grand Plaza Shopping Center: 157 South Las Posas Road, San Marcos, CA 92078

While Party City enjoyed decades of success selling balloons, costumes, and other party essentials, the brand faced mounting challenges from online retailers, pop-up competitors like Spirit Halloween, and big-box chains such as Amazon and Walmart. These factors, combined with pandemic-related cost increases and a helium shortage that impacted its balloon sales, led to the company's decline.

Party City's sudden closure reflects broader trends in the retail industry, where economic pressures have forced many chains to shut their doors. As the company winds down operations, San Diego residents will lose a familiar source of celebration supplies, and thousands of Party City employees nationwide face an uncertain future.

The exact timeline for when each San Diego store will close remains unclear. Further updates are expected as Party City completes its wind-down process.