Party City files for bankruptcy

Executives at Party City are not having any festivities to celebrate right now.

CNN— Executives at Party City are not having any festivities to celebrate right now.

The nation’s largest party good 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 on-line retailers and big-box chains continue 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.

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