My company hosts a "Holiday " party every year.
Our company stopped the practice 3-4 years ago. Some of the reasons are:
1) It used to be "no spouse" but as we got older and more and more staff got married, they wanted their spouse to attend as well. Spouse attending = no fun.
2) Legal liability issues arose because we did serve alcohol. Then we rented a row of hotel rooms for those too drunk to get home on their own but we heard rumours they were being used for outcalls. Hee, hee, hee.
3) What used to be socially acceptable then became "sexual harrassment or assault" such as slow dancing with a female with your hands on her bum.
4) Costs became too high with spouses attending.
5) Other reasons and excuses.