Party City announced Thursday it will close 45 stores across the country this year in light of a global helium shortage.
The company currently owns 870 locations. The closures will take place throughout the year, according to a press release.
“Each year, Party City typically closes 10-15 stores as a part of our prudent network optimization process and in response to ongoing consumer, market and economic changes that naturally arise in the business,” said CEO James Harrison. “This year, after careful consideration and evaluation of our store fleet, we’ve made the decision to close more stores than usual in order to help optimize our market level performance, focus on the most profitable locations and improve the overall health of our store portfolio.”
A list of closing stores has not yet been released.
The recent helium shortage has negatively impacted the company’s latex and metallic balloon categories. Harrison said the company has signed a letter of agreement for a new source of helium which would provide for additional quantities of helium beginning this summer and spanning for two and a half years.
“We believe this new source should substantially eliminate the shortfall we are experiencing at current allocation rates and improve our ability to return to a normal level of latex and metallic balloon sales,” said Harrison.