Party City is closing permanently.

CEO Barry Litwin said it was “necessary to begin a resolution process immediately,” CNN reported Friday, citing comments from Party City’s conference call with its corporate employees.

During a conversation Friday with Party City employees, Litwin reportedly said that Party City’s “very best efforts have not been enough to overcome the problems” the company has faced and that the company has “done everything possible “to try to avoid this outcome”.

A sign reading “Halloween Costumes” is seen in the window of a Party City store in Richmond, California, on September 22, 2020. (Getty Images)

According to the outlet, Party City employees will lose their jobs after Friday. The company reportedly expects widespread store closures in early February.

LARGE PLOTS TO BEGIN EXHIBITION SALES AT THE REMAINING LOCATIONS

According to a press release issued this month, Party City’s North American retail footprint included over 700 company-owned and franchised stores as of the end of October.

Difficulties due to inflation, debt and other factors have reportedly hurt the company. FOX Business has reached out to Party City for comment on its reported plans to permanently close.

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

This reportedly happened nearly four decades after the company was founded and about 14 months after it emerged from bankruptcy.

AMERICAN FREIGHT CLOSES ALL BUSINESS DURING PARENT COMPANY’S BANKRUPTCY FILE

When Party City completed Chapter 11 bankruptcy last year, it said the company had “significantly strengthened its capital structure by eliminating nearly $1 billion in debt, increasing its liquidity and optimizing its Party City store portfolio.” by negotiating improved lease terms and reducing exits.” productive deals.”

A Party City store on September 6, 2019 in Rockaway, NJ (iStock / iStock)

She converted this debt into shares that would be owned by her lenders.

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Party City was delisted from the New York Stock Exchange in January 2023 due to bankruptcy proceedings. It had previously been traded on the stock exchange for about eight years.

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

Breck Dumas contributed to this report.