After bankruptcy and liquidation, a major retail name returns

For almost 40 years, Party City was the place to go for all your party supply needs. The retailer sold everything from birthday tableware to Christmas decor, Halloween costumes, helium balloons, and even baby shower and wedding invitations.The first Party City location opened in New Jersey in 1986. At its peak, the self-described #1 party retailer had more than 850 stores across North America. Then, in 2024 following years of declining sales and mounting debts, Party City filed for Chapter 11 bankruptcy, closing all remaining company-owned stores. A few months later, the chain re-launched its website, selling a more limited selection of its once-massive stock online.Now, for the first time in nearly two years, Party City will be returning to brick-and-mortar retail, giving party planners the chance to shop in person for their soiree supplies.Staples and Party City announce strategic partnershipOn April 21, Staples and Party City announced that they’d engaged in a strategic partnership that would bring the party retailer into 700 Staples stores.“Staples has always been focused on making things easy for our customers, and our partnership with Party City takes that promise into new territory,” Staples President Marshall Warkentin said in a statement accompanying the announcement. “By bringing Party City into Staples stores, we’re expanding what customers can accomplish in one place — combining helium balloons and party supplies with our print and marketing services to offer a complete solution for celebrations, from graduations to grand openings and everything in between,” he continued.While the merchandising assortment won’t be what it once was, the Staples x Party City divisions will include items like party decor, tableware, gift bags, party favors, and costumes and accessories.The in-store experiences will also include a range of foil and latex helium-filled balloons. In the coming weeks, customers will be able to order those balloons in advance via Staples.com and the Staples app.“For as long as we can all remember, Party City has been the trusted go-to for balloons and party goods, known for quality, creativity and celebrations,” CEO of Ad Populum (Party City’s parent company) Joel Weinshanker said. “As we take the new Party City to more places than ever before, finding the right partners is essential,” he continued. “Together, we’re making it easier for our many millions of combined loyal customers to celebrate and party with confidence at their local Party City, now at Staples.”The Staples and Party City partnership is expected to expand into additional stores and online in the coming months, though exact details have yet to be released.Staples & Party City dealsIn celebration of the companies’ partnership, and Party City’s return to brick-and-mortar retail, Staples and Party City are offering customers a slew of money-saving deals, including:Buy 2 get 1 free on select foil balloons (valid 4/19-6/13)$5 off a party supply purchase of $25 or more (valid 4/19-5/2)Inflated balloon bouquets starting at $19.99 (valid 4/19-6/13)40% off custom cards, invitations, photo gifts, wrapping paper, posters, banners, and yard signs (valid 4/19-6/13)Single latex balloons starting at $2Party supplies starting at $1.49 Source: Staples + Party City Staples and Party City announced a new partnership in April, bringing the party supply retailer back to brick-and-mortar stores for the first time since 2024.Getty Images Staples’ ongoing traffic concernsStaples likely has a secondary motivation behind the Party City partnership — increased foot traffic.With more shoppers turning to online retailers like Amazon for their office supply needs, brick-and-mortar speciality stores like Staples and Office Depot have seen a decline in traffic.In March, TheStreet’s Nina Zdinjak reported that Staples had closed 13 locations in between October 2025 and January 2026, with several more closures planned for early spring.In an effort to reengage shoppers, Staples has engaged in a number of partnerships with companies like Stanton Optical, Verizon, and Amazon. The retailer also offers TSA PreCheck enrollment as well as passport services.More retail:Disney announces limited-time, nostalgic retail experiencesTarget drops viral influencer brand under $40 to attract customersGatorade is making a major ingredient changeThe Party City partnership will undoubtedly bring in a wider and more diverse group of consumers that will have a marked impact on Staples’ bottom line. Earlier this month, Allied Market Research projected that the global party supplies market will reach $28.7 billion by 2032.“Companies aligned with personalization, sustainability, and digital commerce will capture a disproportionate share of a market built on one of humanity's most enduring impulses: the desire to celebrate,” the report said. If that analysis holds true, this new partnership between Staples and Party City has set both companies up for massive growth over the next several years. Related: Target brings back nostalgic treat for limited time