Fast-fashion chain Forever 21 is the latest retailer to file for bankruptcy and announce it’s closing stores.
“Last year we saw the highest number of closures since the pandemic,” noted Coresight Research CEO Deborah Weinswig in a January note that predicted closures to more than double this year to approximately 15,000.
As of mid-Jan, major U.S. retailers had announced 29.6% fewer openings and 334.3% more closures in 2025 when compared to the year-ago period.
“Inflation and a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024 … Retailers that were unable to adapt supply chains and implement technology to cut costs were significantly impacted,” said Weinswig.
Here are some of the major retailers closing stores, and what it could mean for you as a shopper.
Major retailers that announced closures late in 2024 and early in 2025 included Party City, Big Lots, Kohl’s, and Macy’s.
Big Lots declared bankruptcy, and most of its stores are now closed, with only 4 locations left as of March 21, according to the company’s website.
Party City also declared bankruptcy for the second time in two years in December 2024 and is shuttering all its locations.
This month, Forever 21, the discount clothing retailer typically geared towards teenagers and young adult women, announced it filed Chapter 11 bankruptcy and is closing all its U.S. stores.
Joann, a fabric retail chain popular among craft enthusiasts, is also filing for bankruptcy and closing 500 of its stores, which is more than half the total it has in the country. Previously, you could also purchase discounted goods on its website, but it’s no longer allowing online orders because there are a number of fraudulent websites.
Joann Fabrics, in its bankruptcy filing, stated it has struggled with sales since COVID-19 when people were making masks. The retailer attributed the decline in sales to “competition from online retailers and increased merchandise costs.”
Brick-and-mortar stores have found it hard to stay profitable as more people choose to go online and shop.
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