A party supply shop born from the ashes of Party City's collapse is already looking to expand. Party Chaos, an independent celebration shop that opened in Round Rock in February, is evaluating potential locations across Central Texas for a second store, according to owner Larry Dugar and manager Jossie Rodriguez.
Party Chaos owner Larry Dugar and store manager Jossie Rodriguez, his business partner, bring more than a decade of combined experience in the party store industry to the venture, having both worked for Party City before launching their own operation, as reported by Community Impact. Their timing lined up with a major shakeup in the industry: Party City closed its Round Rock store as part of a nationwide wave that saw almost a thousand locations shutter, a liquidation that followed a December 2024 Chapter 11 bankruptcy filing and wiped out the chain's roughly 700 standalone stores by February 2025, according to FOX6 Milwaukee.
That left a gap in a Round Rock market that keeps growing. The city's population within city limits reached an estimated 143,075 residents as of September, up from 119,468 recorded in the 2020 U.S. Census, per the City of Round Rock's Planning and Development Services Department. Dugar and Rodriguez opened Party Chaos within the Market at Round Rock retail center along Interstate 35, a high-traffic corridor the store still calls home at 110 N. I-35, Ste. 296.
More Than Shelves of Balloons
Party Chaos stocks the expected lineup of party supplies, costumes, gift wrap and decor essentials, but the owners describe the shop as functioning more like a hands-on design studio than a traditional retail aisle. The store offers custom balloon garlands, arches and stands, along with faux floral arrangements, and works directly with customers planning parties, fundraisers, weddings and other events.
Rodriguez said the store gets involved in customers' occasions rather than simply selling them supplies off a shelf, according to the same outlet. That kind of service-heavy approach fits a broader shift in the industry: custom balloon arches and installations have driven up per-event decor spending, with professional balloon packages routinely priced between $150 and $500 or more, according to Dataintelo.
A Crowded Field of Competitors
Party Chaos isn't the only player trying to capture shoppers left stranded by Party City's collapse. The brand itself has clawed back into the market by partnering with Staples in April to launch shop-in-shops across more than 700 office supply locations nationwide, a move Fox Business reported was aimed at competing through a condensed store-within-a-store model rather than standalone shops. Hoodline covered that rollout in a prior report on the Staples deal.
Arts and crafts chain Michaels has also moved in on the category, expanding its in-store party departments in May with DIY customization bars and nearly 600 new celebration products, according to Fast Company. Elsewhere, discount retailers have simply taken over the physical real estate Party City left behind, as Hoodline detailed in its report on Five Below's old Party City move.
Why the Storefront Still Matters
Despite the online shopping boom, customers can buy party supplies in physical stores as well as online. Hands-on design services, the kind that cannot be replicated by clicking add to cart, offer another reason for shoppers to visit a store even as national chains expand their footprints.
The broader numbers underscore just how much money is at stake. The North American party-supplies market was valued at $5.66 billion, representing 38.2% of total global market revenues, according to the same Dataintelo report. The party store industry overall has been described as a $4.6 billion business, per Community Impact's reporting.
Supply chains have also stabilized since the upheaval. Anagram International, a major foil balloon manufacturer, emerged from Chapter 11 bankruptcy in January 2024 as an independent company after separating from its former parent organization, Party City, according to TechSci Research.
Putting Down Local Roots
Party Chaos has also built ties beyond the sales counter. A representative from the store took part in Round Rock Independent School District's Career and Technical Education externship program in August, helping teachers connect classroom lessons to how a local business actually operates, according to Round Rock ISD. The partnership reflects the kind of community involvement that has followed the shop since it opened its doors in February, and it comes as Round Rock continues drawing new business investment, including Hutto's Cottonwood Creek Brewery, which Hoodline reported is opening a taproom in the city.
For now, Dugar and Rodriguez are keeping their search for a second location focused on Central Texas, with no specific site or timeline confirmed. Customers can find details on the Round Rock store's offerings at www.partychaos.online.
