Party City to close its stores as company files for bankruptcy

LOS ANGELES (AP) -- Party City announced that it's going to "wind down" its retail and wholesale operations as it prepares to shutter nearly 700 stores nationwide. The company said Saturday it has also filed for Chapter 11 bankruptcy protection "to maximize value for the benefit of the company's stakeholders." The New Jersey-based retailer said it will keep more than 95% of its 12,000 employees to help with the process of closing down. Customers have flocked to Party City for Halloween costumes, favors for children's birthday parties and decorations for New Year's Eve celebrations for nearly 40 years. It has faced growing competition from Walmart and Target and from occasion-based pop-up stores such as Spirit Halloween.