Party City has filed for bankruptcy and is initiating a complete wind-down of its operations, closing all stores by February 2025. The retailer, which struggled with debt and competition, will impact 12,000 employees as it seeks to navigate its financial challenges. The decision follows a previous bankruptcy attempt in January 2023 and comes amidst a broader trend of retail closures in the U.S. due to changing consumer behavior and inflationary pressures.