(The Hill) – The retail chain Party City filed for Chapter 11 bankruptcy protections on Monday in an attempt to reduce its massive debt. 

Party City Holdco Inc. (PCHI), the company that runs the chain, filed for bankruptcy to the Securities and Exchange Commission. It received $150 million in financing to support its continuing operations, according to the filing. 

CNN reported that the company has more than $1.7 billion in debt. 

Party City thrived for years but has struggled amid the growth of online shopping. 

The company’s sales dropped by 8% from 2017 to 2021, according to CNN. 

When a company files for Chapter 11 bankruptcy, it can usually continue its business and can borrow additional money with court approval. 

The company said in a press release that it reached an agreement with a group that holds more than 70% of its senior secured debt, which is backed by an asset as collateral, to reduce it. 

CEO Brad Weston cited the financial impacts of the COVID-19 pandemic, global supply chain issues and other macroeconomic trends in the industry as challenges facing the company, but he said the company has created a “solid foundation for long-term growth.” 

“Today’s action to strengthen PCHI’s balance sheet will bolster our ability to further advance our strategic priorities and continue to innovate and elevate the customer experience,” he said. 

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The release states the company still runs more than 800 store locations and offers online shopping. 

The restructuring of the company’s debt is expected to be completed in the second quarter of 2023. 

Bed, Bath & Beyond, another retail store that has struggled as a result of the expansion of online sellers, warned investors earlier this month that it may file for bankruptcy soon.