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.

Party City, which has been struggling since the COVID-19 pandemic, filed for Chapter 11 bankruptcy protection in the United States on Saturday for the second time in two years as it plans to wind down its retail and wholesale operations.

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.