Major party supply chain is going out of business

FILE A shopper leaves a Party City store in Vernon Hills, Ill., Thursday, Oct. 15, 2020.   (AP Photo/Nam Y. Huh, File)

The largest party supply store in the country is shutting down all of its stores after nearly 40 years in business.

Party City’s corporate employees were notified Friday that this will be their last day of employment.

The company’s CEO said Party City will be winding down operations immediately, pointing to the company’s financial challenges as the reason for the collapse.

Party City filed for bankruptcy in January of last year.

The plan canceled nearly one billion dollars in debt, dissolved the company’s stock and kept a majority of its 800 stores, but that wasn’t enough.

The chain still had more than $800 million in debt and that strained earnings this year.

Party City joins a growing list of struggling retails as customers cut back on discretionary spending.

Competition from big box retailers like Amazon, Walmart and others have also led to the collapse of smaller chains.

Party City has locations in Montgomery and Opelika.