Party City files for bankruptcy

(CNN NEWSOURCE) — Executives at Party City aren’t having much fun right now.

The nation’s largest party goods and Halloween specialty retail chain filed for bankruptcy protection Tuesday.

The company said in a regulatory filing that it reached an agreement with debt holders to cut its $1.7 billion debt load.

It comes after years of losses and weak sales as online retailers and big-box chains have been cutting into Party City’s market share.

The emergence of Spirit Halloween, a pop-up store model, also took a lot of business from Party City during the Halloween season.

Party City says it will be able to keep its stores up and running.

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