Major Retail Chains That Shut Down in 2025

In the past year, numerous prominent national retailers faced a wave of closures as they struggled against challenging economic conditions and issues plaguing physical stores.

According to Coresight Research, over 8,100 stores across the United States ceased operations in 2025, marking an increase of nearly 12% from the previous year. Below are some of the well-known businesses that shuttered their doors.

Bargain Hunt Ceases Operations

Early in the year, Bargain Hunt, a retailer offering discounts and based in Nashville, declared bankruptcy and subsequently closed all 92 of its locations spanning 10 states.

Forever 21's Exit from U.S. Market

Facing fierce competition from international fast-fashion brands such as Shein and Temu, Forever 21 decided to cease its U.S. operations.

The brand attributed its closure partly to these foreign competitors who have leveraged the de minimis exemption, allowing them to offer lower prices and margins, thus affecting Forever 21's market position.

Closure of Joann Fabrics

Joann Fabrics, headquartered in Hudson, Ohio, ended its operations after more than eight decades of serving the fabric and craft supplies market.

After its second bankruptcy filing within a few years, the chain could not locate a purchaser willing to keep operations running, resulting in closures driven by enduring difficulties in the retail sector.

Shutdown of Liberated Brands

In February, Costa Mesa-based Liberated Brands disclosed the shutdown of all 122 of its outlets. The company specialized in sports and outdoor apparel, with brands like Beachworks, Becker Surfboards, Billabong, and Quiksilver under its umbrella.

Party City's Store Closures

Party City announced the closure of numerous company-owned and franchised outlets throughout the year following bankruptcy. A few independently operated franchise locations remained functioning, and the brand continues its online retail presence after being acquired by Ad Populum.

Rite Aid Faces Final Curtain

National pharmacy chain Rite Aid, which had already filed for bankruptcy twice within two years, finally closed its operations in October.

Founded in 1962, Rite Aid grappled with low sales and increased expenses. The Justice Department also filed charges in 2023, accusing it of breaching laws related to filling illegal prescriptions for medicines such as oxycodone and fentanyl.

Its website now aids former clients in obtaining pharmacy records and finding new service providers.

Sonder's Abrupt End

Once a competitor to Airbnb, Sonder, specializing in short-term rentals, ended its business, stranding guests and denying them access to their accommodations.

The collapse came after Marriott called off its licensing agreement with Sonder, exacerbating integration difficulties and cost overruns, coupled with diminished revenue brought by its involvement in Marriott's reservation system, as explained by interim CEO Janice Sears.