(WJET/WFXP) -- Early Saturday morning, Party City officially filed for Chapter 11 bankruptcy and confirmed the closure of all its approximately 700 stores nationwide. This bankruptcy filing marks the company's second filing in two years, and more than likely, its final one.

However, it is important to note that Party City locations and its wholesale operations will not be closing immediately. Stores will remain open until the going-out-of-business sales conclude. In a press release, the company stated that it will retain around 95% of its 12,000 employees for some time as the winding-down process commences.

Despite the erasure of $1 billion in debt during its previous bankruptcy filing back in January 2023, the company was still left with over $800 million in debt. As part of that 2023 agreement, lease terms were renegotiated, and 60 underperforming locations were closed.

Today, the New Jersey-based party supply company reports between $1 billion and $10 billion in both assets and debts. The company cited, as many other companies have, major macroeconomic factors that, in the end, proved to be too severe to overcome. The company also referred to an "immensely challenging environment driven by inflationary pressures on

costs and consumer spending, among other factors."

The company has secured funding to continue its operations during the wind-down process, pending court approval.

According to the store's website, sales of up to 50% have already begun at all stores. A store location finder can be found on www.partycity.com.