Leases for Party City stores, including 13 on Long Island, to go to auction

Leases for nearly 700 Party City locations across the country, including more than a dozen on Long Island, will go to auction next month as the party-goods giant shutters operations for good.

The New Jersey-based retailer announced in December that it would "wind down" operations after in December filing for bankruptcy protection for the second time in less than two years "to maximize value for the benefit of the company's shareholders."

Party City — a go-to for party favors, decor and costumes for nearly 40 years — has cited an "immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors" behind its decision to close its doors. 

The company eliminated nearly $1 billion in debt after filing for bankruptcy protection in January 2023 but “macroeconomic headwinds more recently proved too severe” to overcome, the company has said.

The business has deeply discounted remaining merchandise in going-out-of-business sales at retail locations.

The bid deadline and auction, which will be held at 1285 Avenue of the Americas in Manhattan, will probably take place in early February. 

Representatives for the retailer have said the locations would be well-suited for several types of businesses, including gyms, entertainment venues, dollar stores, local specialty retailers, furniture stores and medical offices. 

Stores range from around 7,000 to 46,000 square feet.

"This auction represents an extraordinary opportunity for expanding operators in what marks the end of an era in the retail industry," said Emilio Amendola, co-president of A&G Real Estate Partners, which is acting as real estate adviser to the party goods retailer.

Party City plans to retain more than 95% of its 12,000 employees to assist with the closings, the company said, but did not specify when it would terminate that employment.

The company currently maintains 46 locations across New York, including 13 on Long Island and 10 in the New York City boroughs.

By Brianne Ledda

brianne.ledda@newsday.com@brianne_ledda

Brianne Ledda covers the Town of Islip for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.