The party supplies retailer Party City is closing all of its branches. The company has more than 20 locations in the Chicago area.

As CNN first reported Friday, the party supplies retailer is ceasing operations effective immediately. However, it’s not immediately clear when stores in Chicago and beyond will close. According to CNN, some store employees received letters saying the company would close stores on February 28 and lay off employees.

At a North Center store at 3417 N. Western Ave. One longtime shopper said she was shocked to learn of the closure. Lucy, a Roscoe Village resident of more than 40 years who asked to be identified only by her first name, said she couldn’t remember a time when Party City wasn’t open on Western Avenue.

Lucy waited for her daughter to pick out New Year’s hats. She said she heard about Party City’s dissolution from a fellow buyer after she commented on how many sales the store was making.

“Everyone likes Party City,” Lucy said. “It has everything. I don’t have to go far.”

A manager at Party City’s North Center location, who asked to remain anonymous while he is still employed by the company, said he heard the news from other store managers on Friday.

The manager had not heard of a completion date and was told to continue to meet the schedule.

“I’m still in the dark,” the manager said.

Company representatives for Party City did not respond to a request for comment.

The New Jersey-based chain’s closure comes after nearly 40 years in business, the end of which was marked by financial turmoil. As CNN reported, the retailer filed for bankruptcy in January 2023, forgiving nearly $1 billion in debt through the process. The company named a new CEO, Barry Litwin, four months ago, whose focus is on strengthening Party City’s financial health.

In a video call with company officials that CNN said it viewed, Litwin said Party City’s “very best efforts were not enough to overcome its financial problems.” The growth of e-commerce and pop-up concepts like Spirit Halloween have hurt Party City’s sales. In addition to party supplies, Party City is known for selling Halloween costumes and balloons.

According to CNN, company employees were told Friday would be their last day.

There were no signs at Party City’s North Center store Friday afternoon indicating the retailer’s impending closure or last day. But there were a number of ongoing special offers, such as 50% off select Christmas wrapping materials, 20% off New Year’s Eve decorations and 20% off Valentine’s Day accessories.

Party City isn’t the only smaller chain struggling with big competition. Retailer Big Lots announced Thursday that it would begin selling out of business after filing for bankruptcy in September.