The retail sector has suffered from the liquidation of several iconic retail chains over the last two years as a series of economic challenges forced them to file for bankruptcy and close down their businesses.
Inflation caused labor and product costs to rise over the last three years, and some retailers faced lease rates that were no longer sustainable. In addition to higher costs, retail chains battled other economic challenges, such as increased interest rates on debt and retail theft.
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Huge party supply retailer Party City filed for Chapter 11 bankruptcy for the second time in two years on Dec. 21, 2024, seeking to wind down over 700 store locations in 2025.
Related: Bankrupt giant retail chain closes its remaining locations
Party City has not completely disappeared from the retail landscape yet, as 26 locally owned franchise stores still operate, according to the company’s website.
Big Lots filed for Chapter 11 protection on Sept. 9, 2024, seeking to sell its assets to Nexus Capital Management for a $760 million bid, but the deal collapsed by December 2024, prompting the home goods chain to liquidate all 1,392 of its stores.
Major chains file for bankruptcy and close store locations
Big Lots agreed to a sale to Gordon Brothers Retail Partners on Dec. 27, 2024, that allowed the transfer of stores, distribution centers, and intellectual property to other retailers and companies, including a sale of up to 400 stores to Variety Wholesalers, which planned to reopen stores.
Two other major retail chains filed for bankruptcy in 2025 to liquidate their assets and shut down, as fabric and crafts retailer Joann filed for Chapter 11 bankruptcy liquidation on Jan. 15, 2025, and teen apparel chain Forever 21, which struggled financially for years, filed for Chapter 11 for the second time in six years on March 16, 2025, to wind down and close over 350 stores.
Rite Aid moves closer to the end of its business
Pharmacy chain Rite Aid filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, and closed about 800 of its 2,100 stores in a reorganization.
Related: Distressed haircare brand dealt major blow in filing bankruptcy
The drugstore chain’s surviving entity, New Rite Aid LLC, filed for Chapter 11 protection a second time on May 5, 2025, and began closing all of its stores, consisting of about 1,240 locations.
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Rite Aid filed its 12th notice of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey on July 18, seeking approval to close 17 remaining stores and liquidate their assets, which adds to previously designated locations for closing, for a total of 1,219 stores.
The drugstore retailer has about 21 remaining locations and may file one or more additional store closing locations notices in the next few weeks before completely winding down operations.
The debtor already filed its final location closing order on July 10.
Rite Aid’s 12th additional closing notice consists of store closures in six states, including Washington (10), New York (2), Oregon (2), Maryland (1), New Hampshire (1), and Ohio (1).
Rite Aid already filed 12 notices of store closing locations with the original notice and an additional closing notice on May 9, followed by a second additional closing notice on May 15, a third additional notice on May 23, a fourth additional notice on May 30, fifth and sixth additional notices on June 6, a seventh additional notice on June 13, an eighth additional notice on June 20, a ninth additional notice on June 27, a 10th additional notice on July 3, and an 11th notice on July 11.
The first 12 groups of store closings listed 1,202 locations in 15 states, including Pennsylvania (351), California (347), New York (173), Washington (81), New Jersey (61), New Hampshire (46), Oregon (33), Delaware (29), Virginia (25), Maryland (22), Connecticut (15), Idaho (7), Vermont (5), Massachusetts (4), and Ohio (3).
Related: National fashion retailer files Chapter 11 bankruptcy, still open (for now)
