The retail sector has been shaken this year by several retailer bankruptcies that have led to major chains closing their businesses and liquidating their inventory.
A combination of economic challenges, such as rising labor and product costs driven by inflation, retail theft, high lease rates that no longer make sense, and underperforming stores have forced store closings and sometimes bankruptcy filings.
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Fabric and crafts retailer Joann filed for Chapter 11 reorganization for the second time in less than a year on Jan. 15, 2025, and decided to liquidate and close of all of its stores.
Related: Home Depot rival files for Chapter 11 bankruptcy to sell assets
Teen apparel retailer Forever 21, which struggled financially for years and had been closing underperforming stores, filed for Chapter 11 for the second time in six years on March 16, 2025, to wind down and close over 350 stores.
Giant party supply retailer Party City filed for Chapter 11 protection for the second time in two years on Dec. 21, 2024, in the U.S. Bankruptcy Court for the Southern District of Texas seeking to wind down over 700 store locations in 2025.
Retail chains close stores
The party retailer closed all of its corporate stores, but about 26 locally owned franchise locations remain open across the U.S., according to the Party City website.
Party City previously filed for Chapter 11 protection on Jan. 17, 2023, suffering from the effects of the Covid-19 pandemic which forced the closure of its stores and impacted its supply chain.
Drugstore 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 as part of a reorganization plan.
The drugstore chain filed for Chapter 11 protection a second time on May 5, 2025, as New Rite Aid LLC, and began closing all of its stores, consisting of about 1,240 locations.
Rite Aid closes 114 more stores
Rite Aid filed its 10th notice of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey on July 3, seeking approval to close 114 additional stores and liquidate their assets, which adds to previously designated locations for closing, for a total of 1,184 of its stores.
Related: Major retail chain supplier files for bankruptcy liquidation
The debtor's 10th additional closing notice consists of store closures in 13 states, including Pennsylvania (42), California (27), New York (13), New Jersey (11), Washington (7), Delaware (3), Vermont (3), Connecticut (2), Maryland (2), Idaho (1), New Hampshire (1), Ohio (1), and Oregon (1.)
More bankruptcy
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Rite Aid already filed 10 notices of store closing locations with the original notice and an additional closing notice on May 9, 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, and a ninth additional notice on June 27.
The first 10 groups of store closings listed 1,070 locations in 15 states, including California (319), Pennsylvania (304), New York (159), Washington (65), New Jersey (48), New Hampshire (45), Oregon (32), Delaware (26), Virginia (25), Maryland (20), Connecticut (13), Idaho (6), Massachusetts (4), Vermont (2), and Ohio (2).
Rite Aid might file additional store closing notices before its bankruptcy case closes, since it plans to close all of its stores, estimated at about 1,240. The debtor has included 1,184 stores in the notices that it has already filed.
Related: Another popular movie theater chain files Chapter 11 bankruptcy
