Popular retail chain Party City filed for bankruptcy protection Saturday, a day after it disclosed to employees that it would be implementing mass layoffs at its New Jersey headquarters.

The filing was made in bankruptcy court in the Southern District of Texas, according to court documents obtained by CBS News. The company had liabilities of between $1 billion and $10 billion, according to the filing.

On Friday, Party City's chief human resources officer Karen McGowan informed employees in an email obtained by CBS News New York that it was conducting an immediate "mass layoff" at its headquarters in Woodcliff Lake, New Jersey.

CNN reported Friday that Party City CEO Barry Litwin told corporate employees in a meeting that the company was "winding down" operations. Some store employees also received letters Friday that all the chain's stores would be closing in February, CNN said.

Party City, which specializes in party supplies and was founded in the mid-1980s, has more than 700 company-owned and franchise store locations across North America, according to its website. It also has an e-commerce operation that it manages through PartyCity.com. It's unclear if the online arm will continue.

Party City did not respond to a request for comment when reached by CBS News New York Friday.

2024 has been a rough year for U.S. retailers. There were more than 7,100 store closures through the end of November 2024, a 69% jump from the same time last year, according to data from research firm CoreSight.