These national and regional retailers went out of business in 2025
In the past year, the retail industry has experienced a significant number of bankruptcies, leading to the closure of major national brands and stores across the United States. The challenging economic environment and increasing competition have forced many brick-and-mortar businesses to permanently shut their doors. According to retail industry analytics firm Coresight Research, over 8,100 stores closed in 2025, marking a 12% increase from the previous year.
Bargain Hunt
One of the retailers that succumbed to the tough market conditions was Bargain Hunt, a Nashville-based discount retailer. In February, the company announced the closure of all 92 of its stores across 10 states after filing for bankruptcy. The decision to shutter the stores came as a result of financial challenges and an inability to sustain operations.
Forever21
Fast-fashion giant Forever 21 also faced difficulties and ultimately ceased its operations in the U.S. The company cited fierce competition from international fast-fashion brands like Shein and Temu as a major factor in its downfall. Forever 21 struggled to compete on pricing and margins, leading to its decision to wind down its U.S. operations.
Joann Fabrics
Another casualty of the retail turmoil was Hudson, Ohio-based Joann Fabrics, a longstanding chain specializing in fabrics and craft supplies. After over 80 years in business, Joann Fabrics declared bankruptcy for the second time and closed all of its stores nationwide. Despite efforts to find a buyer, the company was unable to overcome the challenges in the retail environment.
Liberated Brands
Liberated Brands, a California-based retailer focused on sports and outdoor apparel, also faced a similar fate. The company announced the closure of all 122 of its stores, including popular brands like Billabong, Quiksilver, and Volcom. The decision to shut down operations was due to ongoing financial difficulties and market challenges.
Party City
Party City, a well-known party supplies retailer, closed hundreds of company-owned and franchise stores after filing for bankruptcy in late 2024. Although some independent franchise stores remain open, the company underwent significant restructuring and was eventually acquired by retailer Ad Populum. Party City now operates primarily as an online retailer.
Rite Aid
Struggling national pharmacy chain Rite Aid faced multiple challenges, including sluggish sales and high costs related to opioid-related lawsuits. After filing for bankruptcy twice in two years, Rite Aid made the difficult decision to close all of its locations. The company’s website now serves as a platform for former customers to access old pharmacy records and find alternative providers.
Sonder
Short-term rental company Sonder abruptly ceased operating in November, leaving guests stranded and locked out of their accommodations. The decision to shut down came after Marriott terminated its licensing deal with Sonder, citing integration challenges and declining revenue. Sonder’s closure left a void in the hospitality industry and highlighted the complexities of operating in the short-term rental market.
