The party is over for another New Jersey-based retailer.

According to CNN, Party City is ceasing operations immediately after 38 years and is laying off all employees of its company starting Friday, December 20th.

The popular party supply store informed company employees during a conference meeting Friday morning that it will be closing its remaining stores. During the meeting, the company also announced that starting today, its employees will be laid off, will not receive severance pay and will lose their benefits, the report said.

Of the large list of closures, 25 locations are in New Jersey.

“This is without question the most difficult message I have ever had to deliver,” Party City CEO Barry Litwin said during the conference call. “It is really important for you to know that we have done everything possible to prevent this outcome. Unfortunately, it is necessary to begin the dismantling process immediately.”

Litwin said the company, headquartered in Woodcliff Lake, decided to close after failing to overcome its financial difficulties and combat inflation. These issues have increased the company’s overall costs while consumer spending has decreased.

According to NJ BIS, Party City originally considered filing for Chapter 11 bankruptcy in early December 2024 before ultimately closing. This would have been the second filing since January 2023, as the company sought to restructure, reduce its $1.8 billion in debt and increase its savings.

The party store sought to cut costs throughout 2023 by closing 22 underperforming stores nationwide and closing another 35 stores by mid-May. Prior to Friday morning’s announcement, over 60 locations were closed.

Party City was founded in 1986 in the east of Hanover. The party supply store operated around 850 locations in more than 70 countries.

It quickly became a go-to place for party supplies and costumes, especially during the Halloween season. The company’s success in party supplies helped it become the largest retailer of party supplies in the United States, Canada and Mexico.