Party City

Party City's story is kind of wild when you think about it. For nearly four decades, this place basically owned the celebration space-like, where else were you gonna get those giant number balloons and themed napkins that actually matched? Steve Mandell started it all back in 1986 with $125,000 and a single store in East Hanover, New Jersey, and within a year he was already planning location number two.

But here's the thing about Party City that most people don't realize: one quarter of their revenue-we're talking $560 million-came from Halloween alone. That's a massive chunk of business riding on basically two months of the year. And they knew it, too. After just one year in business, Mandell decided to go all-in on Halloween, turning over a quarter of his store into a "Halloween Costume Warehouse". Smart move at the time, but it also meant the company lived and died by seasonal swings.

The company went through some serious ups and downs. They grew like crazy-franchising, acquiring competitors, eventually operating over 850 stores. But then came the perfect storm: e-commerce eating into brick-and-mortar sales, competition from Amazon and big-box retailers, a helium shortage (yes, really), and pandemic-related cost increases. In December 2024, Party City filed for Chapter 11 bankruptcy for the second time, laid off administrative employees, and announced they would close most remaining stores in the United States, though franchise locations in places like Canada, Puerto Rico, and Hawaii continue to operate.

So what's left? Well, 26 franchise stores are still open nationwide, and you can still shop online. It's a drastically smaller operation than the Party City most of us remember, but they're still in the game. The brand that once dominated every strip mall in America has basically become a boutique operation-which is kind of ironic when you think about how it started as a scrappy underdog taking on fragmented mom-and-pop shops.

Notice how retail works in cycles? Party City disrupted the party supply market, grew massive, then got disrupted itself. The franchise model might actually be what saves the brand long-term-those locally owned stores have more flexibility to adapt to their markets. But man, it's weird to think that the place where you bought your kid's first birthday decorations might not be around for their high school graduation party.