Not all is lost for Party City, as certain franchise locations across the U.S. are set to keep their doors open.

When the unexpected announcement about Party City’s bankruptcy surfaced, nearly 900 locations were still running. On December 21, the company filed for bankruptcy protection in the Southern District of Texas, having just come out of another bankruptcy phase in 2023 with a debt reduction of around $1 billion.

However, a group of nine franchises that together operate 29 Party City shops intends to stay open despite the impending closures of many others. Anisa Patel, who co-manages two stores in the Austin region with her family, shared with YSL News that all franchise owners are collaborating to remain operational.

“We are unified in this. We’re in touch with one another,” Patel said. “We have all been caught in the same situation, having to rebuild independently, so we’re teaming up.”

According to Patel, the signs were clear about Party City’s struggles, noting that markdowns began appearing on products as early as October. Following the announcement of bankruptcy, she expressed a feeling of abandonment among franchisees due to lack of communication.

“There has been no communication from them whatsoever; we haven’t even received a letter,” Patel stated. “This is our source of income.”

“The nine franchise owners are in constant touch, supporting each other and sharing resources each day,” Steve Fram, who owns two Party City outlets in Virginia, told Richmond BizSense.

Regarding the brand name, Fram indicated they plan to retain the Party City name “for now.”

Party City did not respond to YSL News for comment on Thursday.

Which Party City locations will stay open?

Patel shared a list of franchisee-operated stores that will continue to operate throughout the United States. YSL News reached out to each store to verify their future plans.