Major Retail Stores Shuttered in 2025

In 2025, the retail landscape shifted dramatically as several well-known brands succumbed to bankruptcy. The year saw the closure of approximately 8,200 retail locations, marking a 12% increase from 2024, according to Coresight Research. This trend reflected ongoing challenges for retailers, even as American consumers continued to drive economic activity despite inflationary pressures.

Major Retail Stores Shuttered in 2025

Among the notable closures were:

Forever 21

• Filed for bankruptcy in March 2025, closing over 500 stores.
• Initially entered Chapter 11 bankruptcy in 2019.
• Was purchased by Simon Property Group, Brookfield Properties, and Authentic Brands Group.

Joann Fabrics

• Announced store closures in February 2025 following its second bankruptcy petition within a year.
• Closed approximately 800 locations after filing in January.
• Michaels acquired its intellectual property and private label brands.

Party City

• Closed all stores in March 2025 after four decades of operation.
• First filed for bankruptcy in January 2023 and had operated under a $150 million restructuring plan.
• Faced multiple challenges, including competition from e-commerce platforms and supply chain issues.

Rite Aid

• Closed all locations by September 2025, after filing for bankruptcy in October 2023.
• Once part of an established drug store chain, it struggled with high debt and litigation costs.
• Final closures included its last stores in Washington and Oregon on September 29, 2025.

The aforementioned retailers illustrate the difficulties faced by many in the industry. The closures symbolize a significant shift in consumer behavior, where competition from online marketplaces and changing market demands continue to reshape the retail sector.