Mar 21, 2025
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.
Advertisement
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.
What stores are closing and why?
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.
Advertisement
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.
Coresight Research’s CEO Deborah Weinswig says that consumers want to access the best prices and “have no patience for stores that are constantly disorganized, out of stock, and that deliver poor customer service.” In its research, it has “seen Shein and Temu capture market share as consumers choose to shop online to save time, money, and avoid frustration.”
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What you can do when stores close
While store closures may not affect overall prices of goods, it does cause disruptions. For one, it may be harder to shop in person at your favorite retailer, assuming there are still locations around. However, you’d still most likely find similar items online.
It’s also a good time to browse at retailers closing locations like Joann for heavily discounted goods.
Before you head to the checkout though, be sure that these are items you’ll use and that you’re staying within budget. Stores that have filed for bankruptcy and are closing most likely won't offer refunds or exchanges.
Other store policies may also change. Joann, for example, is no longer giving discounts for teachers, healthcare workers and members of the military. If you were relying on these discounts, it may not make a huge difference if affected retailers are offering steep discounts on select items. You may want to shop around to see which place offers the best prices for items you want.
You may also have a certain window of when you can use your retailer gift cards. Forever 21 is honoring existing gift cards and any store credit you have, but you will have until April 15 to use them. Joann stopped accepting its gift cards on February 28.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Sarah Li-Cain, AFC is a finance and small business writer with over a decade of experience.
