Party City is closing all of its stores, ending nearly 40 years of business.

CNN reports Party City CEO Barry Litwin told company employees in a video conference on Friday that the chain is immediately “ceasing operations” and that today will be its last day.

“This is without question the most difficult message I have ever had to deliver,” Litwin reportedly said during the meeting, adding that “Party City’s very best efforts have not been enough to address the financial challenges.”

READ MORE: Big Lots is holding clearance sales at all stores

Party City has 10 locations in Alabama, including three stores in the Birmingham area and two in Huntsville.

Party City has been struggling with financial problems for years. The party and costume retailer filed for bankruptcy in 2023 as part of a $150 million deal to restructure its business. In a press release at the time, Brad Weston, chief executive officer of Party City Holdco Inc., cited the difficult recovery from the COVID-19 pandemic and the global supply chain crisis as challenges for the party chain.

Over the years, the company has faced increasing competition from e-commerce platforms and online stores like Amazon, as well as seasonal pop-ups like Spirit Halloween, USA TODAY reports. This year, Spirit Halloween announced it would expand its retail presence in December and Christmas decorations with a number of Spirit Christmas locations.

Party City was founded in 1986 and has more than 700 locations in North America, according to Party City Holdings as of August 2024, The Hill reports.