In the past year, many well-known retailers have shut down, reflecting ongoing struggles in the economy. Over 8,100 store closures across the U.S. marked a 12% increase from the previous year, according to Coresight Research.
Notable Retail Closures
Bargain Hunt
This discount retailer from Nashville announced it would close all 92 locations after filing for bankruptcy.Forever 21
This fast-fashion giant ceased U.S. operations due to intense competition from overseas brands like Shein. They cited difficulties in competing on price and margins.Joann Fabrics
After 80 years in business, Joann Fabrics announced it would close all stores. They failed to recover from declining sales and filed for bankruptcy for the second time.Liberated Brands
This California-based retailer, focusing on sports and outdoor apparel, revealed plans to close all 122 stores, marking a significant loss for the market.Party City
After declaring bankruptcy, Party City closed hundreds of stores. However, some independent franchises still operate, and they continue to sell online.Rite Aid
The national pharmacy chain, which has been struggling, announced the closure of all locations after two bankruptcy filings. Their troubles stem from high costs related to opioid lawsuits and declining sales.Sonder
This short-term rental company suddenly ceased operations, leaving guests stranded. They were affected by issues with a licensing deal with Marriott, which ended abruptly.
Industry Trends
Experts suggest that the changing shopping habits and the rise of online shopping are contributing factors to these closures. A survey by the National Retail Federation in 2025 indicated that nearly 70% of shoppers prefer online shopping for its convenience and variety. This shift has hit traditional retailers hard, making survival challenging.
Historical Context
Looking back, the retail industry has faced ups and downs. The 2008 financial crisis saw many brands fail, but the current wave of closures is different. We now see a blend of online competition and supply chain issues from the pandemic impacting brick-and-mortar stores more than they have in decades.
By understanding these closures and their causes, we can better appreciate the changing landscape of retail. Retailers need to adapt to survive—offering online options, enhancing customer experience, and embracing flexibility are crucial.
For more details on retail trends, you can visit the National Retail Federation.
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Bankruptcy, Chapter 11 Bankruptcy
