Party City is permanently closed.

CEO Barry Litwin said it was “necessary to begin a liquidation process immediately” for the party supply retailer, CNN reported Friday, citing comments from a Party City conference call with its corporate workers.

While speaking with Party City staff on Friday, Litwin said that Party City’s “best efforts have not been enough to overcome” the problems it has faced and that the company “has done everything possible to try to avoid this result”.

A ‘Halloween Costumes’ sign is displayed in the window of a Party City store in Richmond, California on September 22, 2020. (Getty Images)

Party City corporate employees will lose their jobs after Friday, according to the outlet. The company anticipates widespread store closings in early February.

LARGE LOTS TO START OFFERING “GOING OUT OF BUSINESS” SALES AT THE REST OF LOCATIONS

Includes Party City’s North American retail footprint more than 700 company-owned and franchised stores in late October, according to a press release issued that month.

difficulties of inflationdebt and other factors hurt the company. FOX Business reached out to Party City for comment on its plans to permanently close.

A Party City store in Miami on January 18, 2023. (Joe Raedle/Getty Images/Getty Images)

This reportedly comes nearly four decades after the company launched and about 14 months after emerging from bankruptcy.

AMERICAN FRIGHT IS CLOSING ALL STORES AMID Parent Company’s Bankruptcy Filing

When Party City completed its Chapter 11 bankruptcy process Last year, it said it had “substantially strengthened its capital structure by eliminating nearly $1 billion of debt, improved its liquidity and optimized its portfolio of Party City stores after negotiating better lease terms and leaving the less productive stores.”

A Party City store in Rockaway, New Jersey on September 6, 2019. (iStock/iStock)

It converted this debt into equity shares that would be owned by its lenders.

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Party City was delisted from the New York Stock Exchange in January 2023 due to the bankruptcy process. Before that, he had traded on the stock market for about eight years.

Speculation emerged last week that the retailer was weighing whether to file for bankruptcy again.

While all corporate-owned stores are closing, a few dozen independently owned Party City locations will continue to operate.

“Local Party City franchisees are not affected by the bankruptcy,” Mitesh Patel, an Austin, Texas-area franchisee, told FOX Business. “There are a total of 29 franchise stores that will have their stores open and ready to continue serving their local communities.”

Breck Dumas contributed to this report.