(NEXSTAR) – Party City, once among the top names in party-supply retailers, is going out of business, according to an announcement from CEO Barry Litwin that was viewed by CNN.

Litwin, during a conference call with employees, broke the news Friday, the outlet reported.

“Unfortunately, it’s necessary to commence a winddown process immediately,” Litwin reportedly said.

Bloomberg reported earlier this month that Party City was exploring a second bankruptcy filing amid financial troubles stemming from slow sales. Party City Holdings, Inc., had previously filed for bankruptcy in early January 2023, but emerged from Chapter 11 in September of that year after plans to reorganize were approved by the U.S. Bankruptcy Court for the Southern District of Texas. At the time, Party City’s then-CEO Brad Weston called approval “an important milestone in completing our financial restructuring and successfully positioning PCHI for the future.”

Litwin, who took over in August 2024, said he planned to focus on the company’s financials to support continued operations. In a LinkedIn post, he also suggested that money issues were significant.

“Our main priority is to strengthen our financial health, and there is work ahead of us,” he wrote.

CNN, reporting on Litwin’s Friday call with corporate employees, said he told them that today was their last day of employment with the company. It was not clear when Party City locations would be shuttering.

A representative for Party City was not immediately available to provide further information.

Party City, founded in 1986, has over 700 locations in North America as of August 2024, according to Party City Holdings. The brand also sold party supplies at PartyCity.com.