Party City announced it will close nearly 700 stores and wind down operations after filing for Chapter 11 bankruptcy for the second time in two years.

Despite eliminating nearly $1 billion in debt during its 2023 restructuring, the company couldn’t overcome inflation, rising costs, and increased competition from Walmart, Target, and seasonal pop-up stores like Spirit Halloween.

Party City will retain over 95% of its 12,000 employees to assist with the shutdown, offering discounts of up to 50% on remaining inventory, ABC News has reported.

Written by B.C. Begley