Published 5:29 PM EDT Aug 9, 2019
Party City is increasing the number of stores expected to shutter this year.
The New Jersey-based party supplies company said it was looking to close 55 stores throughout the year, up 10 from the May estimate of 45 stores.
“Overall, in the second quarter we continued to experience headwinds from direct and indirect impacts of the helium shortages and higher helium costs in many of our markets,” Party City CEO James Harrison said in a statement Thursday. “Additionally, results were negatively impacted by the flow through of temporarily higher freight costs incurred in late 2018 and non-recurring inventory markdown costs associated with planned store closures.”
In May, Harrison said that the company typically closes 10 to 15 stores each year.
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In the company statement, Party City said the company took strategic steps “to better position the business for future growth and to support our capital allocation priorities.”
A helium shortage was a part of the company’s obstacles, but officials say they “secured additional helium supply.”
Party City also announced it is selling 65 Canada stores to the Canadian Tire Corporation and is looking to increase its “overall distribution of party goods into the Canadian market through a long-term supply agreement.”
The year has been a tough one for retailers, with more store closings already announced than all of 2018.
Based on figures from global marketing research firm Coresight Research, bankruptcy filings and company earnings reports, retailers have announced more than 7,600 store locations will close in 2019.
This week, Walgreens said it would close 200 stores and more Sears and Kmart closings were announced.
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