The brands we lost in 2025
The interior of a recently closed Rite Aid store in New York.
New York (CNN) — In 2025, shoppers said farewell to a number of well-known retailers.
Forever 21 didn’t live up to its name. The celebrations ended at Party City. And it all went wrong for Rite Aid.
These stores were just some of the roughly 8,200 locations that shut their doors this year, about 12% more than 2024, according to Coresight Research.
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.
Here are some of the major chains that went bust in 2025:
Forever 21
Forever 21 filed for bankruptcy (for the second time) in March and closed down its US operations, shuttering about 500 stores.
The company blamed “economic challenges impacting our core customers” – namely, cost-sensitive teens shifting their allegiance to competitors – as well as the rise of foreign fast fashion companies.
Forever 21 was unable to keep up with Chinese e-commerce giants such as Shein and Temu, especially as online shopping boomed during the pandemic. The company was also sensitive to President Donald Trump’s tariffs on imports into the United States.
Joann
Fabrics and crafts retailer Joann closed up shop in February, ending more than 80 years in business.
The closure came following its second Chapter 11 filing within a year, with the company blaming sluggish sales, inventory problems and a heavy debt load.
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,” its former CEO Michael Prendergast said in a January press release.
However, the brand name and some of Joann’s beloved private labels were recently revived by Michaels with a “store within a store” concept.
Party City
Party City first announced it was going out of business about a year ago, but fully closed its stores in February. The chain, best known for balloons and other celebratory supplies, had been in business for 40 years.
The retailer previously declared bankruptcy in January 2023 and struggled with debt, carrying more than $1.7 billion at one point.
Party City also faced lots of competition – from e-commerce sites, pop-up concepts like Spirit Halloween and big-box retailers like Walmart and Target.
Rite Aid
Rite Aid, once one of America’s biggest pharmacy chains, closed its doors in October following its second bankruptcy in the past few years.
The full-service pharmacy first opened in 1962 and became well known for its cult-favorite ice cream brand, Thrifty, which was sold off during the store’s bankruptcy proceedings.
Rite Aid first filed for bankruptcy in October 2023, largely because of competition from bigger chains and its debt pile. That debt topped $4 billion due to expensive legal battles for allegedly filling unlawful opioid prescriptions.
Rite Aid emerged from that first bankruptcy in September 2024, having slashed $2 billion in debt, closed 500 stores and secured $2.5 billion in funds to maintain operations.
But, months later, Rite Aid’s store count dwindled and competitors like CVS Pharmacy and Walgreens bought up its pharmacy operations.
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