Party City plans comeback by partnering with major retailer to open 100-plus mini-stores in California

Party City is bringing back the balloons.The once-dominant party supply chain — which filed for bankruptcy five days before Christmas 2024, after forty years in the business — is plotting a comeback in California and beyond through a new partnership with Staples, the companies announced Tuesday.The deal will bring “mini” Party City shops — which are now available inside more than 700 Staples locations nationwide — in more than 100 stores across California, effectively turning the retailer into a one-stop shop for everything from printer ink to birthday balloons.Just in time for graduation season, the in-store popups will stock Party City staples like helium balloons, decorations, tableware and party favors — while tapping into Staples’ existing print services for custom banners, invitations and yard signs.California's top news, sports and entertainment delivered to your inbox every day.

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Never miss a story The move signals a major pivot for Party City, which is leaning on partnerships to rebuild its footprint after its financial collapse rocked the retail world.“By bringing Party City into Staples stores, we’re expanding what customers can accomplish in one place,” Staples U.S.Retail President Marshall Warkentin said in a statement, touting the combo of party supplies and same-day printing as a “complete solution for celebrations.”Party City’s new ownership echoed that sentiment, pitching the rollout as a way to bring the brand “to more places than ever before” by tapping Staples’ national reach and neighborhood presence.The collaboration comes as demand for celebration spending remains strong — with nearly 4 million high school students expected to graduate in 2026 and billions already being shelled out annually on parties and events.Customers hitting the revamped stores can expec...