The once go-to-destination for all things celebrations is throwing its last bash.

After nearly 40 years in business, Party City announced Saturday that it has begun a "wind down" of its retail and wholesale operations as it prepares to permanently close all of its locations.

Going-out-of-business sales and discounts have also started. On its website, Party City is advertising that everything is on sale up to 50% off.

"The decision was made following exhaustive efforts by the Company to find a path forward that would allow continued operations in an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors," store owner Party City Holdco Inc. said in a statement.

Party City did not immediately respond to NPR's request for comment.

It comes just three months after the one-stop party shop exited bankruptcy with plans to restructure. The company had filed for bankruptcy in January 2023 while shouldering nearly $2 billion in debt.

The retailer said Saturday that it was able to reduce its debt by close to $1 billion, but those efforts were simply not enough. The company has since refiled for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.

"As with many other retailers, macroeconomic headwinds more recently proved too severe for the Company to overcome," Party City Holdco added.

The company said it had roughly 700 stores and some 12,000 employees. All stores will be shuttered and employees will be terminated on Feb. 28, CNN reported.

Party City was once unmatched in its vast selection of affordable celebration goods. But over the years, competition stacked up at Walmart, Target, Spirit Halloween and especially online sellers such as Amazon.

Inflation made the situation worse, as consumers had less money to spend on party supplies.

The news of Party City's demise comes just two days after Big Lots announced it will launch going-out-of-business sales at its remaining stores in an effort to stay afloat.