Party City controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile3 entries
2024
Second bankruptcy-related wind-down
The company announced another bankruptcy-related wind-down less than two years after its first restructuring, including the closure of corporate-owned U.S. stores and disposition of leases and other assets.
2023
Chapter 11 bankruptcy filing
Party City entered Chapter 11 after pandemic-related disruption, changing consumer behavior, debt obligations, and pressure on discretionary retail weakened its operating position. The filing was a financial distress event rather than an allegation of misconduct.
2020
Party City responds to Confederate-flag costume complaint
Company response
After a customer complained about children's Civil War costumes featuring the Confederate flag at a franchise location, Party City said it had asked the local branch to remove the items from sale and said it had reached out to franchisees and other partners to remove them from retail locations. The company also said it did not tolerate racism or hatred.
Company response
Apology — Party City
A party accessory store has been forced to apologize after it was found to be selling children's Civil War costumes emblazoned with the Confederate flag.
Remediation — Party City
Party City, which operates more than 850 stores worldwide, said it had pulled the offending items from its branch in Bailey's Crossroads, Virginia, after complaints from a customer.
Source excerpt
In a statement issued to WUSA, the company said: "At Party City, we do not tolerate racism or hatred of any kind, and we stand together in solidarity with our diverse colleagues, customers, and communities.
Responding to the complaint, Party City asked the local branch to remove the items from sale.
The Confederate flag to me is a symbol of racism.