The party is over for Party City.

According to CNN, the New Jersey-based retailer, which had more than 850 locations worldwide as of August this year, will close all of its stores as it runs out of money to sustain the business.

Barry Litwin, the company’s chief executive, told company employees Friday that Party City was immediately “ceasing operations” and that today would be their last day on the job.

“This is without question the most difficult message I have ever had to deliver,” Litwin said at the meeting, which took place via video conference.

Litwin told his employees that Party City’s “best efforts have not been enough to overcome its financial problems.”

He said the company was doomed by stubbornly high inflation, which drove up costs and discouraged consumers from buying.

“It’s really important that you know that we did everything possible to prevent this outcome,” Litwin said.

“Unfortunately, it is necessary to begin dismantling immediately.”

The Post has reached out to Party City for comment.

According to CNN, Party City employees had been expecting the company to collapse for weeks.

According to a former corporate headquarters employee who spoke to CNN, the development team was called back from its annual trip with suppliers two weeks ago and told to go home immediately.

The team was told that the company believed the trip posed a security risk because Party City was no longer paying its suppliers.

All Party City corporate employees were sent home on December 10 and security guards locked the main entrance to the company’s headquarters in Woodcliff Lake, New Jersey.

Employees participating in Microsoft Teams chats on Thursday were upset with management over the lack of communication regarding the product development team’s recall.

Other employees learned that store managers were informed that all Party City locations would close on February 1, according to CNN.

Employees were angry because company executives failed to mention the financial problems at recent community meetings.

“We recognize that the flow of communication was not consistent with our usual approach to sensitive matters such as these,” Litwin said, acknowledging that employees were frustrated.

Karen McGowan, the company’s human resources director, broke down in tears several times during a video conference in which she detailed severance pay and other benefits that would be given to employees, CNN reported.

“I definitely know this is a lot to take in,” McGowan said before pausing and bursting into tears.

“Excuse me.”

The company had considered filing for bankruptcy for the second time earlier this month, after first filing last year because it was struggling to pay rent at some locations.

Party City, known for selling balloons and other party supplies, first filed for Chapter 11 bankruptcy protection in January last year with $150 million in debtor-in-possession financing to support its operations and reported estimated assets of $1 billion to $10 billion US dollars and liabilities.

In September, the retailer adopted a plan to exit bankruptcy that included canceling about $1 billion of the company’s debt and handing over the entire equity value to the retailer’s lenders.

Struggling retailers often file for bankruptcy protection after the holiday season to take advantage of the cash cushion created by recent sales.

After exiting bankruptcy, the company hired Litwin as CEO. He wrote that his “main priority is to strengthen our financial health, and we have a lot of work ahead of us.”

This is a developing story. Check back for updates.