The party is over for Party City, which is closing all its stores and going out of business after 40 years of supplying balloons, cups, candles, and tableware for everything from birthday and anniversary parties to Halloween and Super Bowl celebrations. The New Jersey-based retailer is the largest party supply store in the U.S., with more than 800 locations.In a video meeting on Friday, a recording of which was seen by Fast Company, CEO Barry Litwin told corporate employees that Party City is winding down operations immediately and Friday would be their last day of work, adding that the companys best efforts have not been enough to overcome its current financial challenges.Litwin, who took over as CEO just four months ago, said that store closing sales are beginning today and will continue over the coming weeks and months.According to CNN, which reported the news of the closing, Litwin noted that the company struggled with inflation and high costs leading to declining sales.Like many retailers, including Big Lots, which is also going out of business, Party City struggled with changing consumer habits as fewer Americans are shopping in-store at big retailers and are opting instead for cheaper goods online or forgoing purchases altogether. Party City also faced increased competition from Spirit Halloween and its new Christmas pop-up stores, which debuted this holiday season.Fast Company has reached out multiple times and to multiple points of contact at Party City for comment, but did not immediately hear back.The news follows a Bloomberg report that the companys parent company, Party City Holdco Inc., was considering selling the business or filing for bankruptcy for the second time in less than two years. Party City had been struggling financially for years, with poor sales and about $1.8 billion in debt when it entered bankruptcy in 2023.This story has been updated with new developments.