The retail sector is facing a devasting year in 2025 if a certain data firm’s prediction comes true.
Retailers have ramped up store closings since recording 1,680 closings in 2022. Retail businesses shut down more than twice as many stores in 2023 than the previous year with 4,070 closings, the National Retail Federation reported.
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The sector shuttered even more stores in 2024 with 7,325 going dark, Coresight Research reported. Closings are expected to more than double again in 2025 with about 15,000 stores shut by the end of the year.
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Specialty home dĂ©cor and housewares retailer Kirkland’s (KIRK)  said on Feb. 18 that it will close or turn around about 6% of its 317 store locations in 35 states that are unprofitable as part of its strategic initiatives to improve profitability.
Things have already been pretty bad in 2025 as discount retail chain Bargain Hunt on Feb. 5 launched going-out-of-business sales at all 92 of its locations in 10 Southern and Midwestern states after its parent company Essex Technology Group LLC filed for bankruptcy on Feb. 3.
Liberated Brands liquidates and closes all stores
Bargain Hunt’s bankruptcy filing came a day after Liberated Brands, manager of retail operations for some of the top surf labels in the U.S. and Canada, filed for Chapter 11 bankruptcy protection on Feb. 2.
Liberated Brands managed online and in-person sales for brands like Billabong, Roxy, Quiksilver, RVCA, Honolua, and Boardriders through a licensing agreement with Authentic Brands Group, which owns the labels.
Authentic Brands terminated the management agreement with Liberated in December 2024 and said it would transition to a new wholesale licensing model in the U.S. and Canada. All 122 of Liberated stores will conduct close-out sales and shut down permanently after liquidation.
Joann Inc. is liquidating and closing all of its stores.
Image source: Getty Images.
Joann to liquidate and close all stores
And now crafts and fabrics retailer Joann Inc. will close all 800 of its retail stores and liquidate its assets in going-out-of-business sales after selling its assets to an affiliate of GA Group and its prepetition term loan lender at an auction, which included a $105 million credit bid from the lender, Retail Dive reported.
Related: Huge national car wash chain files Chapter 11 bankruptcy
Joann’s executives, board of directors, advisers, and legal partners were unsuccessful in negotiating a favorable outcome to keep the company in business, the company said in a statement. The parties instead are working together for an orderly wind-down of the chain’s operations.
More closings:
Popular retail chain to close unprofitable store locationsBankrupt retail chain unloads store leases, key assetPopular discount retailer files bankruptcy, closes all stores
The Hudson, Ohio, retail chain filed for Chapter 11 bankruptcy for the first time on March 18, 2024, seeking to hand ownership to its creditors who took the company private and wiped out shareholder equity.
The bankruptcy restructuring and reorganization was not successful as the company filed for Chapter 11 bankruptcy a second time on Jan. 15, 2025, seeking a sale of its assets.
The company sought a sale of all of its assets to stalking-horse bidder Gordon Brothers Retail Partners with alternate bids accepted for a Section 363 auction, according to a statement at the time.
The company had hoped that the sale process would allow it to continue operating as a going concern, but the sale instead led to a liquidation.
Joann was established over 80 years ago in a single storefront location in Cleveland.
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