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Party City controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

Back to profile3 entries

  1. 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.

  2. 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.

  3. 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.