8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



    Date of Report (Date of earliest event reported): October 5, 2000
                                                      ---------------



                             PARTY CITY CORPORATION
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)



              Delaware                    0-27826              22--3033692
         ------------------          -----------------       -------------
    (State of other jurisdiction     (Commission File          (IRS Employer
         of incorporation)                Number)            Identification No.)



    400 Commons Way, Rockaway, NJ                      07866
    ---------------------------------------         -----------
    (Address of principal executive offices)          Zip Code



    Registrant's telephone number, including area code: (973) 983-0888
                                                        --------------





Item 5.     Other Reportable Events

     On October 5, 2000 the Board of Directors (the "Board") of Party City
Corporation (the "Company") voted to increase the number of directors
constituting the Board from five to seven and, in order to fill the two
vacancies thereby created, elected Michael Tennenbaum and Edward Mule as
additional members of the Board, to hold office until the next annual election
of directors.

     A copy of the press release issued by the Company announcing the foregoing
is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.     Financial Statements and Exhibits

     99.1   Press release of Party City Corporation, dated October 9, 2000.





                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                         PARTY CITY CORPORATION


Dated:  October 10, 2000                 By:  /s/ Thomas E. Larson
                                              --------------------
                                         Name:  Thomas E. Larson
                                         Title: Chief Financial Officer

EX-99.1

                                                                    EXHIBIT 99.1

                                               NEWS RELEASE

                                               Contact: Thomas E. Larson
                                                        Chief Financial Officer
                                                        (973) 983-0888 Ext. 4810

FOR IMMEDIATE RELEASE
- ---------------------

                 PARTY CITY CORPORATION ANNOUNCES APPOINTMENT OF

              EDWARD A. MULE AND MICHAEL E. TENNENBAUM AS DIRECTORS



     Rockaway, New Jersey, October 9, 2000 - Party City Corporation (OTC: PCTY),
America's largest party goods chain with 427 Company-owned and franchised
stores, today announced that Edward A. Mule and Michael E. Tennenbaum have
joined its Board of Directors. On October 5, 2000 the Board of Directors of the
Company voted to increase the number of directors constituting the Board from
five to seven and, in order to fill the two vacancies thereby created, elected
Mr. Tennenbaum and Mr. Mule as additional members of the Board, to hold office
until the next annual election of directors.

     Mr. Mule has served in various positions with Goldman, Sachs & Co. since
1984. He currently is the Head of Special Situations Investing and also serves
as Head of Asian Special Situations. Prior to assuming those positions, Mr. Mule
headed the firm's distressed debt trading operation. Mr. Mule began his career
in Mergers and Acquisitions, and also previously served in several capacities in
the Office of the Chairman.

     Mr. Tennenbaum is the founder and managing member of Tennenbaum & Co. In
that capacity, Mr. Tennenbaum has specialized in making equity and debt
investments both in securities and in operating businesses, with an emphasis on
high return opportunities arising from complex circumstances. Prior to forming
Tennenbaum & Co., Mr. Tennenbaum served for 32 years in various capacities at
Bear Stearns, including as Vice Chairman, Investment Banking and as a Director.
His responsibilities included managing the firm's Risk Arbitrage Department,
Investment Research Department and Options Department.





     Jim Shea, Party City's CEO stated, "We are fortunate to have attracted two
directors with such distinguished careers to Party City. I look forward to their
contributions and counsel to the Company as we continue to work toward realizing
Party City's potential."

     Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve known and unknown risks and uncertainties, which may cause the Company's
actual results in future periods to differ materially from forecasted results.
Those risks include, among other things, the competitive environment in the
party goods industry in general and in the Company's specific market areas,
inflation, changes in costs of goods and services and economic conditions in
general. Those and other risks are more fully described in the Company's filings
with the Securities and Exchange Commission.

                                      # # #