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The legend of the Clöyne.

The Clöyne was an ancient demon residing in mountain caves in the Nordic regions of Europe.

The legend stated that it was the origin for the look of the Clown itself-with its bloody red nose blistered from the cold, its pale snow-like completion with no sunlight, a horn on its head resembling a funny party hat, and large feet that inspired the size and shape for clown boots.

It would lure children into its cave with funny tricks, laughter, anything to gain a child's trust-only to devour them on the spot. Somehow the Clöyne was caught and most likely decapitated - as it is revealed that the head, hands, and feet dissolve once its head is off, leaving only its hair, skin, and nose.

Herbert's trunk used for holding the Clöyne costume.

After the true story of the Clöyne was forgotten the faint memories of it would inspire the tradition of the clown, while its remaining body parts were made into a costume; its red nose and snow-white skin becoming a suit while its hair became a rainbow-colored wig.

Centuries later, and by accident, Herbert Karlsson, the founder, and owner of a 1970s costumes/textiles company called Karlsson Costumes and brother of the cancer treatment specialist, Dr. Martin Karlsson, discovered the costume when he received it from an Icelandic aristocrat at an estate sale.

Originally intending to sell the costume to Russia's Moscow Circus, Herbert decided instead to give the children at his brother's hospital hope by wearing the costume to cheer them up. Unfortunately, the costume slowly began to possess and change him, and his brother Martin after realizing this began a search for a cure. In the end, Martin succeeded in his search however the solution he discovered came at a terrible price. In order to free his brother he had to give in and give the Clöyne demon what it wanted: five Children for it to feast on, one for every month of the long Icelandic Winter, something Martin accomplished by giving it dying patients from the hospital he worked at.

Upon doing this Herbert was freed of the costume without any knowledge of what he had done, but a guilt-ridden  Martin told him of the situation, and both vowed to destroy it. However no matter what they did, be it burning it or dissolving it in acid, the costume would not be destroyed. So Martin kept it in Herbert's suitcase and chained in his basement.

Later in the year 2014, Martin died and real estate agent Kent McCoy, who is a loving husband and father, was hired to sell the property. As luck would have it Kent's management of the property began around the same time as his son Jack's 7th birthday party, something which was supposed to feature a clown. At the last moment, however, the clown scheduled to appear was accidentally sent to another party due to a double booking and Jack's party was set to be a tragic disaster. Yet just before this could happen Kent discovered the clown "costume" in Martin's basement and decides to wear it to become a replacement clown to entertain Jack and his friends.

After the party, Kent fell asleep still wearing the clown costume, but the next morning, he discovered he is no longer able to take it off. He feels that the bodysuit, wig, and red nose are slowly and progressively adhering to his skin. Even his wife Meg begins to realize something was off as when she tries to help Kent remove the fake nose it rips from his flesh wounding him. As more time passes even more physical symptoms begin to manifest, in addition to a noisy gurgling in his stomach and an intense insatiable hunger he begins coughing up rainbow-colored blood and his skin becomes paler.

Trying to understand what is happening to him, Kent decides to track down the previous owner of the costume, Herbert. When Kent goes to Herbert for help in removing it, Herbert invites him over to his warehouse only to trick him and drug him. He then tries unsuccessfully to behead and kill Kent by in any attempt to stop the Clöyne from hurting anyone else.

Kent believing Herbert insane escapes and kidnaps him intending to take him to the police. Before he can do that, Kent is forced to move away from his family after breaking his brother-in-law's arm after he tries to rip his "wig" off. Now isolated from his family Kent attempts to drive Hebert to the police station, only for Kent's hand and foot to begin to grow bigger, and Herbert to try and kill him again resulting in their car crashing.

Kent now aware of his nature tries to fight his new instincts and hunger as they continue to grow stronger and stronger-resulting in him biting a young boy's fingers off at a camp and almost eating a child in a restroom stall. This causes Kent to finally contemplate suicide. He goes into a motel that is on one of his properties and shoots himself in the mouth, but this proves to be unsuccessful. He later tries to decapitate himself with a power saw, only to accidentally kill a child (who had been bothering him earlier) with it and eats his body afterward. Meg finds Kent and takes him home where she chains him in the basement. When she leaves, Kent (now under the influence of the Clöyne) tricks Jack into letting him lose, so he can kill a bully at his school-something he succeeds in doing so.

Kent as he transforms into the Clöyne.

Meg tries to understand what is afflicting her husband and attempts to help him fight against the demon that is dominating his body. After Karlsson rescues her from her dog which had become possessed after eating the Clöyne nose she had removed from Kent earlier, Meg teams up with Karlsson with the intent to free Kent, or alternatively to decapitate Kent should the rescue attempt fail. 

Meg and Herbert manage to track the Clöyne to a Chuck E. Cheese where it kills two more kids. After the Clöyne overpowers and kills Karlsson, it makes a deal with Meg that it will release Kent if she offers it the final child sacrifice. Otherwise, it would devour their son Jack next. Meg, puzzled at first, then seems to give in to the demon's blackmail but finally renounced her intention-just in time to realize that it was a false deal to distract her while it sought out Jack.

Racing home Meg discovers the clown had beat her there and killed Jack's grandfather by ripping off his jaw. A fight then breaks out with Meg fighting her demon-possessed husband not only to save Jack but also herself due to the demon discovering her previously hidden pregnancy and being drawn to the unborn child. After a long chase inside the house, Meg is able to chain the terrifying monster, then knock its head mostly off with a hammer before finally killing it for good by forcibly tearing the creatures head the rest of the way off when it attempts to attack her son one last time.

In the end, the accursed costume is last seen packed up to be analyzed by the police as evidence from the crime scene, leaving it unknown as to whether or not the demon will stay dead or whether the nightmare would resume again should a new "wearer" come across the flesh of the Clöyne and don it.