2025 was a brutal year for brick-and-mortar retailers in the United States. A report from the retail industry analytics firm Coresight Research showed that more than 8100 stores closed across the country. This is a 12 percent increase from 2024.
The shutdowns were driven by high operating costs, tough online competition, especially from foreign retailers like Shein and Temu, and the lingering burdens of legacy brands.
Rising costs of goods and shipping from inflation and tariffs squeezed margins for companies already struggling with debt. Consumers also continued to shift from traditional mall brands and toward discount retailers or direct-to-consumer online sites.
Major National Closures
• Rite Aid: After filing for bankruptcy twice in just two years, the pharmacy giant announced the closure of all remaining locations in October 2025. Rite Aid was crippled by sluggish sales and massive legal costs related to opioid-related lawsuits.
• Party City: The party supply chain closed hundreds of company-owned outlets. Although some independent franchises remain, the brand itself was sold to Ad Populum and will operate primarily as an online retailer moving forward.
• Joann Fabrics: A staple in the craft industry for 80 years, Joann shuttered all of its U.S. stores in February 2025. Despite an attempt to restructure through bankruptcy in early 2024, the company failed to find a buyer to keep the lights on.
• Forever 21: The fast-fashion retailer wound down its U.S. operations in 2025. The homegrown company explicitly blamed foreign fast-fashion companies that use various tax loopholes to undercut their prices and margins.
Specialty and Regional Retailers
• Liberated Brands: In February, this sports and outdoor apparel company closed all 122 of its stores. This impacted well-known sportswear and sports accessories brands like Quiksilver, Billabong, Roxy, and Volcom.
• Bargain Hunt: This Nashville-based discount retailer, formerly known as Essex Bargain Hunt, declared bankruptcy in February 2025 and closed all 92 of its stores across 10 states. More than 300 individuals were laid off by March 2025.
• Sonder: Once considered a major rival to Airbnb, this short-term rental company collapsed in November 2025. The failure was due to a sharp decline in revenues and was attributed to a delayed and costly integration with Marriott.
Bankrupt But Reopening
Some retailers went under and declared bankruptcy. However, instead of shutting down for good, their declaration was intended to reshape their organizational structures.
Discount retailer Big Lots closed hundreds of locations after a 2024 bankruptcy filing. It was acquired by Gordon Brothers Retail Partners in early 2025. Between 200 and 400 stores were later reopened after being finally purchased by Variety Wholesalers.
Home furnishing superstore At Home filed for Chapter 11 bankruptcy in June 2025 and closed 30 stores, but continues to operate its remaining stores across the country.
FURTHER READING AND REFERENCE
- Coresight Research. n.d. “Coresight Research Store Trackers.” Coresight Research. Available online
Photo Credit: Michael Rivera / 2019 / Adapted / CC BY-SA 4.0 International