MERIDEN — Party City is closing its store at Townline Square due to lackluster sales, the company reported Friday.
Merchandise has been marked down 20 to 40 percent and the company has put the space on the market to sublease for the remaining 19 years of its 20-year lease.
“Party City routinely evaluates our portfolio of stores in response to ongoing consumer, market and economic changes that naturally arise in the business,” a company statement said. “After careful consideration, we have decided to close the Meriden, CT store location this spring. Party City customers in the area will still be able to find the products they love in-store at the nearby Party City locations in Southington (750 Queen Street), North Haven and Waterbury, as well as online through www.partycity.com.”
Bob Bowden of R. Calabrese Agency LLC, received a request from Party City to find a sublease tenant for the 12,500-square-foot store. Party City, which moved from the Kohl’s Plaza just south on Route 5 in Wallingford to Townline Square last year, has a lease until 2028, according to the listing on Loop Net.
The chain, also known as Party City Holdco Inc. reported lower than expected fourth quarter results, according to its 2018 financial statement. Revenues increased 2.4 percent on a reported basis, and retail sales went up 4.3 percent. Total gross profit margin decreased 20 basis points, due to freight and distribution costs, and increased commodity pressures, including higher helium costs.
In 2018, Party City Holdco opened 15 new stores, acquired 58 franchise and independent stores, and closed 10 stores. In addition to Party City, the company operates stores under the names, Halloween City, and Toy City, and e-commerce websites.