Party City Bankruptcy 2025. Party city holdco on tuesday filed for voluntary chapter 11 bankruptcy protection. Party city filed for bankruptcy protection tuesday, weighed down by competition and years of financial losses.

Retailer party city has filed for chapter 11 bankruptcy protection in a bid to restructure its heavy debt load and keep its doors open after supply chain woes, rising inflation. The company first filed for chapter 11 bankruptcy protection in the u.s.