Retailers across the US have adjusted their strategies, reduced store footprints, and battled to stay afloat amid shifting consumer habits and rising inflation.
In this tough environment, several major companies have filed for bankruptcy and are set to close locations in 2025.
Retail Gazette North America highlights some of the key companies facing closures.
Liberated Brands: Filed for bankruptcy and will close 122 stores
Liberated Brands filed for Chapter 11 bankruptcy in February and plans to close all of its 122 retail stores.
The company struggled to gain footing after losing a licensing deal with Authentic Brands Group for the Boardriders banners including Billabong, Roxy, and Quiksilver.
Liberated Brands managed retail and ecommerce operations for the brands Billabong, Roxy, and Quiksilver.
David Brooks, executive vice president of action and outdoor sports and lifestyle at Authentic, commented: “Liberated’s US store fleet was overinflated, burdened with outdated and underperforming locations.”
Joann: Filed for Chapter 11 and will close 500 stores
Fabrics and craft retailer Joann filed for bankruptcy due to rising challenges in retail and additional financial and inventory troubles according to the company.
The company had previously filed for protection under Chapter 11 bankruptcy in March 2024 but exited.
The retailer will close approximately 500 stores across the US as part of its strategy and plans to sell all of its assets.
However, approximately 350 locations across various states will remain in operation alongside its ecommerce website.
Party City: Filed for bankruptcy and will close 700 stores
Party goods retailer Party City filed for Chapter 11 bankruptcy in December 2024 due to challenges with rising market competition and financial struggles with outstanding debts.
The company previously filed for bankruptcy in January 2023 before reemerging in October.
The retailer will close its approximately 700 stores after 40 years of operations.
Big Lots: Filed for bankruptcy and will close 450 stores
Discount retailer Big Lots is closing 450 locations across the US after filing for bankruptcy in September 2024.
The Columbus-based company cited increasing inflation and high interest rates as reasons for its reduced purchases from customers.
Asset liquidation and restructuring firm Gordon Brothers made an agreement to assist with the transfer of the brand.
Gordon Brothers plans to sell approximately 500 Big Lots leases, which operate over 900 stores across the US.
However, despite the mass closure approximately 200 stores are likely to remain open.
Walgreens: Will close 500 stores
US pharmacy retailer Walgreens plans to close approximately 500 stores in 2025 as part of its long-term strategy to reduce its fleet size over the next three years.
Tim Wentworth, Walgreens Boots Alliance, said on a call: “We also want to be accessible and convenient, but we need to be appropriately sized.”
The company reported a loss of $3 billion in Q3 of 2024 and is implementing a fleet restructuring plan to recover. It will close 1500 stores over the next three years.
Macy’s: Will close 66 stores
Macy’s plans to close 66 stores as part of its strategy to focus investments on high-performing locations and strengthen its existing fleet.
Tony Spring, chairman and CEO of Macy’s, said: “Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go-forward stores, where customers are already responding positively to better product offerings and elevated service.”
As a part of its long-term strategy, the retailer expects to shutter approximately 150 underperforming locations to bolster its growth.
Kohl’s: Will close 27 stores
Kohl’s announced plans to shutter 27 locations by April 2025.
The company stated the closures are a part of its strategy to bolster growth and eliminate underperforming locations.
The retailer operates a fleet of over 1,165 locations across the US.
Tom Kingsbury, Kohl’s CEO said: “As we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams.”
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