After nearly 40 years in operation, Party City is going out of business, with all stores closing CEO Barry Litwin told its corporate employees Friday that Party City is “winding down” operations immediately and that today will be their last day of employment,

On Friday, store staff received letters stating that all stores will officially close by Feb. 28, 2025. Until then, Party City’s roughly 700 locations will remain open for “going out of business” sales while supplies last. The company added that about 95% of its 12,000 employees will remain on staff through the closure period.

Party City, which operated about 750 stores, had filed for Chapter 11 bankruptcy in January 2023 and emerged from the process in October 2023 with $1 billion less in debt. It also named a new CEO, Barry Litwin, who joined the company in August 2024.