Party City to Wind Down Operations, Fire Employees, CEO Says (1)

Party City Holdco Inc. will shut down and lay off its employees just 14 months after the company exited bankruptcy under a plan that had been designed to ensure the retailer’s long-term survival.

Chief Executive Officer Barry Litwin told employees that the costume and party supplier couldn’t overcome pressure from low-spending consumers and high inflation. Going-out-of-business sales began Friday, he said in a video seen by Bloomberg News.

“And as a result we regret to inform everyone that today will be your last day of employment,” Litwin said in the video. “That is without question the most difficult message that ...