Dec. 20 (UPI) — The CEO of retailer Party City, which operates more than 700 company-owned and franchised stores across North America, said the company will go out of business, CNN reported Friday.

Barry Litwin told employees in a video meeting monitored by the station that Party City was “ceasing operations immediately” and that Friday would be their last day of work.

CNN reported that Litwin told employees that they would not receive severance pay and would lose their benefits if the stores closed.

“It’s really important that you know that we did everything possible to prevent this outcome,” he said. “Unfortunately, it is necessary to begin the resolution process immediately.”

Litwin took over as CEO of Party City in August.

Founded in 1986, the party supplies retailer is North America’s largest party supplies retailer, but was hit hard first by the COVID-19 pandemic and more recently by inflation, leading to higher costs and reduced consumer spending.

The New Jersey-based chain has been experiencing significant financial problems for more than two years. In January 2023, the company filed for Chapter 11 bankruptcy, citing lower sales, liquidity problems and a huge debt load.

The subsequent restructuring plan eliminated nearly $1 billion of its debt and resulted in improved lease terms, while closing less productive stores. But in the end, the measures weren’t enough to keep the party going.