Balloon-selling Party City chain closes shops due to helium shortage

'This year, after careful consideration, we've made the decision to close more stores than usual'

(AP/Hau Dinh)

A party supplies shop has said it will have to close several outlets across America in a difficult year for retailers and amid a global helium shortage.

Party City announced it will close 45 of 870 shops across the United States and Canada this year, including in California, Illinois, Connecticut, and Washington.

The shop sells novelty items including party balloons and fancy dress.

"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 optimise our market level performance, focus on the most profitable locations and improve the overall health of our store portfolio," James Harrison, the chief executive of Party City, said in a statement.

The company typically only closes 10 to 15 shops each year, Mr Harrison said.

But this year has been a tough one for retailers, with more closings already announced than in all of 2018, according to marketing research firm Coresight Research.

Party retailers may be particularly badly hit due to a global helium shortage. The naturally occurring resource, used to blow up balloons, is non-renewable and the world is running out of it.

However Party City hasn’t given up just yet. The chain has said it is optimistic it will be able to secure a new helium source which would “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", Mr Harrison said.