Retail chain Party City said a disputed inventory appraisal accelerated its collapse into its second bankruptcy in less than two years.

The impending closing of Party City was triggered weeks ago when the retailer was surprised by a sudden — and disputed — drop in the value of its inventory, the company said in court papers.

Party City announced that it's going to “wind down” its retail and wholesale operations as it prepares to shutter nearly 700 stores nationwide.