According to a CNN report, Party City announced on Friday that it would close all of its stores and began corporate layoffs effective immediately.

CEO Barry Litwin told company employees in a meeting watched by CNN that Party City needed to “immediately begin a wind-down process” and that Friday would be their last day working for the company.

“This is without question the most difficult message I have ever had to deliver,” Litwin said at the meeting, according to the report.

CNN reported the company’s closure was due to the party supplies retailer’s ongoing financial problems, which filed for bankruptcy less than two years ago after failing to pay off $1.7 billion in debt.

The New Jersey-based chain emerged from bankruptcy in September 2023 through a plan that included becoming a privately held company and canceling nearly $1 billion in debt. A majority of the 800 US branches were able to remain open after the bankruptcy.

Litwin was named CEO in August and said at the time that he “sees many opportunities to strengthen our financial performance and create a leading end-to-end celebration experience for consumers,” according to a press release.

Prior to his appointment, he was CEO of Global Industrial Company, a leading industrial products distributor.

Competition in party supplies and costumes has increased in recent years, including the continued rise of Spirit Halloween within and outside of the spooky season. The holiday costume chain announced in October that it would open 10 new Spirit Christmas stores, with some of the stores being converted from existing Spirit Halloween locations.

Online retailers have also increased pressure on Party City’s operations, even as the company began offering items Amazon in 2018.

Representatives for Party City did not immediately respond to CNBC’s request for comment on the CNN report or possible closures of the story. Read the full CNN report here.