One of the biggest names in parties has announced that they have filed for bankruptcy protection and fans are wondering will any of their stores close.

If you've ever thrown a birthday party and were the person in charge of decorating, needed a costume for Halloween, or needed balloons for a special occasion, the odds say that at one time or another, you've stepped foot inside a Party City store. Party City stores carry everything needed to throw a perfect themed party from plates, napkins, utensils, and party favors to balloons and more. They are also an extremely popular place around Halloween for children and adults to find everything for that year's costume.

Party City is Bankrupt

According to News 10, the chain store officially filed for Chapter 11 bankruptcy protections on Monday 1/16 to try and reduce its massive $1.7 billion debt. The massive debt is the result of numerous factors including many customers choosing to shop for party goods online, "the COVID-19 pandemic, global supply chain issues, and other macroeconomic trends in the industry" according to the company CEO Brad Weston. Party City experience many years of success but in 2017 the decline started with the company's sales dropping by 8% from 2017 to 2021.

After filing, Weston said that the company has created a "solid foundation for long-term growth. Today’s action to strengthen PCHI’s balance sheet will bolster our ability to further advance our strategic priorities and continue to innovate and elevate the customer experience."

The holding company that runs Party City is Party City Holdco Inc. (PCHI), which received $150 million in financing to support its continuing operations from a financial group that is holding much of the company debt. Party City hopes to have all of the company's debt restructuring done by the second quarter of 2023.

SEE ALSO: Former Fast Food Restaurant to Reopen as Something New in Ulster, New York

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Party City Stores Will Remain Open

When a company files for bankruptcy oftentimes they are allowed to continue to do business as usual which means that Party City will be able to keep most of its 800 locations open. That includes the stores located across the Hudson Valley in Kingston, Wappingers Falls, Monroe, and Middletown.

If they do decide to close any stores in the future, we will update this article with affected locations.

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