The impending closing of Party City was triggered weeks ago when the retailer was surprised by a sudden — and disputed — drop in the value of its inventory, the company said in court papers.

New Jersey-based Party City is going out of business after the retailer filed for Chapter 11 bankruptcy. How many of its stores will close in Delaware?

Party City announced that it's going to “wind down” its retail and wholesale operations as it prepares to shutter nearly 700 stores nationwide.

Party City, which operated about 750 stores, had filed for Chapter 11 bankruptcy in January 2023 and emerged from the process in October 2023 with $1 billion less in debt. It also named a new CEO, Barry Litwin, who joined the company in August 2024.

Party City, which has been struggling since the COVID-19 pandemic, filed for Chapter 11 bankruptcy protection in the United States on Saturday for the second time in two years as it plans to wind down its retail and wholesale operations.

Party City informed employees in an email on Friday that it was conducting an immediate "mass layoff" at its headquarters.

Party City, known for its party supplies and seasonal Halloween City popup stores, has filed for bankruptcy and is going out of business.

The Bergen County, N.J.-based chain announced Saturday that it was starting a "wind down process." Stores remain open, with going-out-of-business sales of up to 50% off.

Party City, which operates more than a dozen locations in Greater Philadelphia and over 850 outposts across the country, is closing all of its stores. Friday was the last day of work for corporate employees, the retail chain's CEO, Barry Litwin, told them in a videoconference call watched by a CNN reporter, which first reported the news.