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In a brief report summarizing some of the most major retail exits of the past year, CNN writer Jordan Valinsky detailed the reasoning behind the moves while also provoking further questions tied to what comes next.
"Slumping consumer sentiment, poor finances and years of shifting shopping habits have left some of these aging chains in a lurch. Some are headed down a path to bankruptcy as Americans dial back on discretionary purchases as inflation remains a stubborn problem," Valinsky wrote, noting that 8,200 retail locations had shuttered in 2025, a statistic ~12% higher than the number recorded in 2024.
Forever 21, Joann, Party City, and Rite Aid Among List of Retailers Leaving the Market in 2025
Up first was Forever 21, a once-favored fast fashion mainstay in the retail space. Forever 21 filed for bankruptcy, the second time it had done so, in March and folded its stateside business, closing approximately 500 stores. The company underscored the challenging macroeconomic environment, in addition to aggressive competition from rising stars in the same segment -- namely Shein, and to some extent, Temu -- for its misfortunes. Tariffs also played a key factor in Forever 21's exit, according to Valinsky, who noted that the retailer's supply chain was impacted by President Trump's trade policies.
Joann was next on the list, with the once-beloved crafts and fabric retailer closing out over 80 years of business as of February after also seeking a second Chapter 11 filing within the span of a single year. As RetailWire covered in January as Joann was initiating the sale process, then-interim CEO Michael Prendergast spoke of the difficulties the company was confronted with, despite executing on top- and bottom-line goals.
“However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step," Prendergast said at the time. Michaels would end up buying Joann, promising to bring the most popular portions of the Joann experience to its own stores.
The party was also over for Party City, ending its lengthy 40 years of operations in February after a winding down period initiated a year prior. Crowded out by competitors on all sides, from various online retailers and pop-up concepts (notably, Spirit Halloween and the emerging Spirit Christmas) to established players such as Walmart and Amazon, Valinsky pointed out that the debt-laden company had previously filed for bankruptcy in January of 2023.
A similar story was attached to Rite Aid, which emerged from bankruptcy in September 2024 after trimming about $2 billion in debt and closing 500 stores. Months later, despite having acquired $2.5 billion in funds to keep the ship afloat, Rite Aid's store count continued to tumble as competitors -- Valinsky highlighted CVS Pharmacy and Walgreens, in particular -- snatched up its pharmacy operations.
This list is not exhaustive, as Hardware Retailing noted: Claire's, Big Lots, and At Home are also staring down an uncertain future.