The Brands We Lost in 2025: A Year of Retail Disruptions
New York —
2025 marked a significant year for shoppers as they bid farewell to several well-known retailers, with a total of approximately 8,200 locations closing their doors, a 12% increase from 2024, according to Coresight Research. Slumping consumer sentiment, poor financial health, and shifting shopping habits have left some aging chains struggling. Many of these brands are facing bankruptcy as Americans cut back on discretionary purchases due to persistent inflation.
Here's a closer look at some of the major chains that went bust in 2025:
Forever 21: The fast-fashion giant filed for bankruptcy for the second time in March, closing down its US operations and shutting approximately 500 stores. The company cited economic challenges, including cost-sensitive teens shifting their spending to competitors and the rise of foreign fast fashion brands like Shein and Temu, which outpaced them in the e-commerce space during the pandemic. The tariffs imposed by President Donald Trump also impacted their operations.
Joann: This fabrics and crafts retailer closed its doors in February after more than 80 years in business. The closure followed a second Chapter 11 filing within a year, with the company attributing sluggish sales, inventory problems, and a heavy debt load. However, the brand name and some of Joann's beloved private labels were recently revived by Michaels with a unique 'store within a store' concept.
Party City: The party supply retailer, known for its balloons and celebratory supplies, announced its closure a year ago but fully shut down its stores in February. Party City had been in business for 40 years and previously declared bankruptcy in 2023 due to debt struggles, carrying over $1.7 billion at one point. The chain faced intense competition from e-commerce sites, pop-up concepts, and big-box retailers like Walmart and Target.
Rite Aid: Once one of America's largest pharmacy chains, Rite Aid closed its doors in October after its second bankruptcy in a few years. The full-service pharmacy, which opened in 1962 and was known for its cult-favorite ice cream brand, Thrifty, sold off during the bankruptcy proceedings, faced challenges due to competition from larger chains and its substantial debt, which topped $4 billion due to legal battles over unlawful opioid prescriptions. Despite emerging from its first bankruptcy in September 2024, Rite Aid's store count dwindled, and its pharmacy operations were eventually bought by competitors like CVS Pharmacy and Walgreens.
These closures highlight the ongoing retail landscape challenges, with many brands struggling to adapt to changing consumer behavior and economic conditions.
