The Major Retail Brands That Shut Down in 2025

Shoppers across the country said goodbye to several familiar retail brands in 2025 as thousands of stores permanently closed their doors.

According to CNN, roughly 8,200 retail locations shut down this year, marking a 12 percent increase compared to 2024. Analysts point to slumping consumer sentiment, inflation, mounting debt, and long-term changes in shopping behavior as key reasons behind the closures.

One of the most high-profile losses was Forever 21. The fast-fashion retailer filed for bankruptcy for the second time in March and ultimately closed all U.S. operations, shuttering about 500 stores. The company cited economic pressure on cost-conscious shoppers, increased competition from overseas retailers like Shein and Temu, and the lingering impact of tariffs and online shopping trends.

Craft lovers also felt the loss of Joann, which closed in February after more than 80 years in business. The fabrics and crafts retailer filed for Chapter 11 bankruptcy twice within a year, blaming sluggish sales, inventory challenges, and heavy debt. While Joann’s stores are gone, its brand name and some private-label products have been revived through a partnership with Michaels.

Party City officially went out of business in February, closing the final chapter on a 40-year run. Known for party supplies and balloons, the retailer struggled with more than $1.7 billion in debt and fierce competition from online retailers, pop-up shops like Spirit Halloween, and big-box stores such as Walmart and Target.

Another major closure came in October when Rite Aid shut down after its second bankruptcy in recent years. Once one of the nation’s largest pharmacy chains, Rite Aid was burdened by billions in debt, legal costs tied to opioid lawsuits, and competition from CVS and Walgreens. Despite briefly emerging from bankruptcy in 2024, the company was unable to regain its footing.

Retail experts say these closures reflect a broader transformation in how Americans shop, with consumers cutting back on discretionary spending and increasingly turning to online options. As 2025 comes to a close, the wave of shutdowns highlights the challenges facing traditional retailers in an evolving marketplace.

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