You may have to look for a new place to buy helium balloons for your child's next birthday party.<doc-sep>Party City is having trouble staying afloat amid a global helium shortage. The New Jersey-based party supply-company has announced it will close around 45 stores nationwide this year as it grapples with dwindling supplies of the gas that fuels its massive balloon business. “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,” CEO James Harrison said in a release. There are only three main helium suppliers in the world — in Qatar, Wyoming and Texas — that extract the nonrenewable gas from underground deposits. They account for about 75 percent of the world’s helium, USA Today reported. Obtaining the gas is a costly process — and it’s only become more expensive as countries such as China drive up demand by using it as a liquid coolant while manufacturing electronics and operating medical diagnostics tools, according to CNBC. Party City said it typically shutters 10 to 15 stores each year. The chain didn’t disclose whether any of the Big Apple’s eight locations would be affected. Closures have already been reported in Connecticut, Illinois, California and Washington, according to USA Today. Party City customers in Manhattan fretted about potential local store closures. During a visit to the company’s Union Square location, Laly Chriki, 21, said she’d be out of luck for her monthly dinner parties. “The prices of balloons are high, but they’ve always been high,” Chriki told The Post on Friday. “I guess if this store closes, I can buy stuff online, but I don’t know where I’d get the balloons filled.” Varuna Mirchandani — who was purchasing birthday balloons Friday — said her family would buy its own helium tank if the local Party City shuts its doors. “Our aunt does events, and she uses this location. She comes here at least three times a month,” Mirchandani, 19, said. “She would maybe have to buy tanks herself because the flower shops are really expensive and won’t fill up bigger balloons.” Meanwhile, Party City is scrambling to find alternatives for customers desperate for the decorations. “Most importantly, we have signed a letter of agreement for a new source of helium which, subject to final execution of a definitive contract, would provide for additional quantities of helium beginning this summer and continuing for the next 2.5 years,” Harrison said. “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.”<doc-sep>The planned store closings were announced Thursday, as the company reported a first-quarter net loss of $30.3 million. In a call with financial analysts, CEO James Harrison said Party City also will test four new smaller-format stores this year and is developing a new store concept “designed to improve the overall shopping experience and product merchandising of our stores to provide a crisper, cleaner and easier shopping environment and a more open footprint.”<doc-sep>
The party is over for some Party City locations. The New Jersey-based party supply chain said it will close 45 of its 870 locations in the U.S. and Canada. According to USA Today, closures have been reported in California, Illinois, Connecticut and Washington. James M. Harrison, CEO of Party City, said the chain typically closes 10-16 stores a year. “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,” Harrison said. The closures come amid a global shortage of helium, used by the chain in balloons. The impact of the helium shortage has been “negatively impacted our latex and metallic balloon categories,” Harrison said, adding a solution to the issue has been found. “We have signed a letter of agreement for a new source of helium which, subject to final execution of a definitive contract, would provide for additional quantities of helium beginning this summer and continuing for the next 2.5 years,” Harrison said. According to Business Insider, here’s a list of the closing so far: 19037 Golden Valley Road, Santa Clarita, California 300 S. Highland Springs Ave., Banning, California 3629 W. Florida Ave., Hemet, California 533 S. Broad St., Meridien, Connecticut 2350 Sycamore Road, DeKalb, Illinois 1020 N. Stratford Road, Moses Lake, Washington The list will be updated as more store closures are announced.