Party City Franchisee Files for Chapter 11
A Little Rock-based Party City franchisee has sought bankruptcy protection while its stores remain open.
Updated on Nov. 11, 2026 in Openings & Closings
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A Little Rock-based Party City franchisee filed a Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the Eastern District of Arkansas on November 5, 2026. The company continues operating its Little Rock and Fayetteville stores as of November 10.
Why it matters
The filing comes as the national Party City brand has contracted sharply since its parent company's 2024 bankruptcy, leaving fewer stores in Arkansas and across the country. Shoppers in Little Rock and Fayetteville should check store status as the case proceeds.
The petition lists $1 million to $10 million in assets and liabilities, a small range against Party City's former peak of 850 North American locations. The outcome of the reorganization has not been disclosed.
The players
Party City Holdco Inc.
The parent company of the Party City brand, which filed for bankruptcy in December 2024 and closed about 700 locations afterward.
Staples
The office supply retailer that established a strategic partnership with Party City in April 2026 for store-in-store locations.
The details
The franchisee operates Party City locations in Little Rock and Fayetteville and continues to serve customers as the case moves forward. Eight independent Party City franchise stores have closed in 2026, leaving 11 remaining independent store locations.
Timeline
December 21, 2024: Party City Holdco Inc. filed for bankruptcy and later closed about 700 locations.
January 2026: Independent franchise store closures began.
April 2026: Party City established a strategic partnership with Staples.
November 5, 2026: The Little Rock franchisee filed its Chapter 11 petition.
Franchise Fallout
The franchisee's filing follows Party City Holdco Inc.'s December 2024 bankruptcy, which led to roughly 700 store closures across its network. Independent franchisees have since faced their own closures and financial strain.
Customers of the Little Rock and Fayetteville stores should confirm hours and merchandise availability before visiting. Gift cards and loyalty balances may be affected depending on how the bankruptcy case resolves.
The takeaway
Shoppers who rely on a local franchise should keep receipts and gift card records in case the bankruptcy case affects stored value. Checking store status directly before a special purchase can prevent a wasted trip.
Further reading
For more on store closures and openings across the state, see Openings & Closings in Arkansas business coverage.
Source note: This article includes information reported by Biloxi Sun Herald.
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