The costume and party supplies chain Party City has filed for Chapter 11 bankruptcy protection, and is in the process of an expedited restructuring that will substantially lower its debt and free up cash. The company's 800+ stores and website will remain open, and its franchise stores, subsidiaries outside of the U.S., and foil balloons Anagram business are not part of the restructuring. The filing comes as the U.S. retail industry continues to suffer from persistently high inflation and a pullback in customer spending.