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Party City, a national retail chain specializing in party supplies, announced Friday that it would be closing all of its store locations, effective immediately, after nearly 40 years of business.

The news, first reported by CNN, comes nearly a year after the company filed for bankruptcy, citing rising prices and a drop in customer spending.

In January, the company portfolio included more than 800 company- and franchise-owned locations. Four former Party City locations in the Central Valley — two stores in Fresno, and one store in both Clovis and Visalia — separated themselves from Party City in August 2023, rebranding as Party Works, a Visalia-based discount party store founded in 1985.

CNN first reported the closure this morning after CEO Barry Litwin informed corporate employees in a meeting viewed by CNN that Party City is “winding down” operations, effective immediately. Staff was informed that they will not receive severance pay and that their benefits would end effective Friday.

“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, which was held on a video conference call.

Litwin became the New Jersey-based company’s new CEO and knew from the get-go that the company had major financial issues and challenges ahead of them, including more than $800 million in debt, further straining the store’s earnings.

“It’s really important for you to know that we’ve done everything possible that we could to try to avoid this outcome,” Litwin said. “Unfortunately, it’s necessary to commence a winddown process immediately.”

Party City is the largest party supplier in the United States, boasting nearly 17,000 full- and part-time employees as of 2021.

Hanford is home to the lone Party City location in Fresno, Kings, Madera and Tulare counties.