WASHINGTON -- Party City filed for bankruptcy on Saturday, a day after the party supply retailer told employees it would begin "winding down" operations.

The filing comes a little more than a year after exiting its last Chapter 11 protection in October 2023. The New Jersey-based company filed for bankruptcy 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," the company said in a press release. "PCHI is grateful to its team members for their commitment over the years and is retaining more than 95% of its 12,000 employees for some time to assist with the wind down process."

Party City announced its stores will remain open with going-out-of-business sales while supplies last.

On Friday, the company's CEO broke the news to corporate employees that Party City was "winding down" operations and it was their last day of employment, CNN reported. The announcement came on a video conference call, which CNN said it had viewed.

Store managers were told all locations would be shut down by February 2025, according to CNN.

Party City, which is the country's largest party supply store, has more than 850 locations across 45 states and Puerto Rico. The company didn't immediately respond to a request for comment.

The news of Party City shutting down comes just days after Big Lots revealed it would be closing all of its stores. The discount retailer said a sale to a private equity firm fell through, but they still hoped to either revive the deal or find another buyer by early January.

It's unclear when the nearly 1,000 remaining Big Lots stores are set to close, or if a completed sale could prevent them from closing.