For nearly 40 years, customers flocked to Party City for Halloween costumes, favors for children's birthday parties and decorations for New Year's Eve celebrations. Now, the go-to shop for everything from cartoon-themed balloons to Super Bowl decor is closing stores.

Party City informed employees in an email on Friday that it was conducting an immediate "mass layoff" at its headquarters.

Party City, known for its party supplies and seasonal Halloween City popup stores, has filed for bankruptcy and is going out of business.