[On the Sunday after Thanksgiving 2024, six members of Party City’s product development and sourcing teams left New Jersey for a 12-day trip to mainland China to meet with suppliers. However, the trip only lasted two days. The team was told to return home due to financial issues, including not paying vendors in full for several months.
The team was aware of the supplier pressure and was repeatedly asked by management if it was safe to travel to China, but they were assured it was safe to do so. However, when they arrived, they were told to cut their trip short and return home.
In an email, a senior leader wrote that the company’s purchase plans were being re-evaluated, and it was best for them to return home. The team was stunned and felt that their concerns were not being addressed.
The team eventually returned home, only to find out that the company was on the brink of bankruptcy and was planning to liquidate its entire business. The news was announced on December 20, 2024, and thousands of employees were laid off.
Employees described the atmosphere in the office as “chaos” and felt betrayed and abandoned by the company. One former employee stated, “It’s just like the biggest slap in the face that they could’ve done. And no company should treat their employees like this.”
The company’s CEO, Barry Litwin, announced the bankruptcy and liquidation, stating that the company had done everything possible to avoid the outcome. However, the employees are now seeking compensation for violations of the WARN Act, which requires 60 days’ notice before mass layoffs.
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