The company has for years faced mounting pressure from competitors lke Target and Walmart.
Party City has filed for Chapter 11 bankruptcy protection after struggling with rising prices and a pullback in customer spending.
The company, based in Woodcliff Lake, New Jersey, said that its franchise stores, subsidiaries outside of the U.S. and its foil balloons Anagram business are not part of the restructuring and will remain core components of its business.
Party City Holdco Inc., said its more than 800 company-owned and franchise stores throughout North America will remain open, and customers can still shop on the company website.
The chain is planning an expedited restructuring that it said would substantially lower its debt and free up cash.
The company has secured a commitment from the Ad Hoc Group for $150 million in debtor-in-possession financing.
