A number of chains that were once mall staples, including Forever 21, JCPenney, and Claire’s, have experienced bankruptcies and closures over the last few years, significantly impacting mall-tenant dynamics. 

Surprisingly, many landlords welcomed this as good news rather than a challenge. They are focusing on bringing in stronger, more profitable tenants that can pay higher rents and attract current shopper demographics, according to the Wall Street Journal. 

Landlords are eyeing multiple smaller retailers or entertainment/dining options that could generate higher sales per square foot. 

“You can’t blame declining foot traffic for pushing many mall retailers to close stores,” explained retail expert and TheStreet Co-Editor-in-Chief Daniel Kline. 

In October 2025, the foot traffic to indoor malls and open-air shopping centers grew significantly both year over year and month over month, according to data from Placer.ai. 

Placer.ai data, however, measures foot traffic and not purchases. Further, mall values are still far below the peak of 2016, and chain store closures leave vacancies that are hard to fill, especially for second-tier malls. 

“And hundreds of low-end malls across the U.S. have either closed or are slowly dying,” reports Kate King for the Wall Street Journal. 

According to Coresight Research, malls are generally divided into tiers:

• Top-tier malls: Affluent areas, luxury and new digital-native brands, and an annual resident income of over $200,000
• Mid-tier malls: Solid anchor presence, fewer vacancies, and an annual resident income of around $100,000
• Low-tier malls: Challenges with vacancies and foot traffic

While top-tier malls are thriving, mid-tier and low-tier malls are struggling. Now, one mid-tier mall has lost four popular brands. 

Banana Republic, Tommy Bahama, Madewell, and Wockenfuss Candies close stores at the Towson Town Center Mall in Towson, Maryland.

Image source: Shutterstock

Tommy Bahama, Banana Republic, and more close at Towson Town Center

Banana Republic, Tommy Bahama, Madewell, and Wockenfuss Candies recently closed or are about to close their stores at the Towson Town Center Mall in Towson, Maryland (Baltimore County), reported CBS News.

Tommy Bahama already left the mall, while a chain operated by Gap Inc., Banana Republic, and a retailer run by J. Crew Group, Madewell are expected to exit the popular mall over the next few weeks. 

While Wockenfuss Candies is not a national brand, it is the oldest candy maker in Baltimore, making sweets for more than a century. It recently confirmed closure of its location in the Towson Town Center. 

“We have enjoyed our years at Towson Town Center. After much consideration, we have made the difficult decision to permanently close this location, effective immediately. We appreciate all of our customers for their support and hope you will visit another of our locations in the future. The closest store to Towson is North Plaza Center (8900 Waltham Woods Road),” Wockenfuss Candies posted on Facebook. 

According to a Patch report from late December 2025, the Macy’s at Towson Town Center has indeed been targeted for a 2026 closure. 

The economy has changed, Nancy Hafford, with the local Chamber of Commerce, told WMAR-2 News.  

“People don’t have as much expendable funds as they used to a couple years ago. With the cost of goods being so high, they don’t have as much to spend, and Amazon has really hurt a lot of the retail businesses too, so that’s another reason that we’ve had some challenges,” Hafford said. 

The retailers’ exit comes as the city is dealing with a virtual ghost town in Towson Square, where many restaurants next to the movie theater have already left.

Hafford added she has talked with the company running the area’s revitalization. “They are working diligently to attract new businesses in. One thing we’ve found in Towson is people’s palates have changed. So they’re not going to the big national chains as much.”

She’s optimistic about Baltimore County Economic Development’s incentive programs to engage new retail businesses in the community. 

Consumers also blame closures on growing safety concerns 

The mass retail departure is the latest blow to Towson Square, which has been troubled with youth violence in recent years. Last November, a robbery and stabbing at the mall resulted in the arrest of four teens, and a county councilmember urged mall management to “be a stronger partner in maintaining a safe environment,” according to Fox Baltimore. 

Although some consumers are blaming the brands’ departures on safety concerns as well as economic challenges, none of the retailers has confirmed or denied that leaving the mall has anything to do with the violent incidents. 

“I’ve been going there for 20 years, so I’ve seen stores come. I see stores go, but because of theft and crime in the mall, it makes it bad. Where do we shop now?” shopper Sabrina Pitchford-Gorman told CBS News. “I’ve seen them [teens] grab people’s bags or snatch phones or interrupt your lunch, so that makes it uncomfortable to shop.”

Back in October 2025, one man was also charged after allegedly stabbing a woman in the mall’s parking lot. 

“I wouldn’t go there by myself late at night or anything, but during the day I feel fine. I live right nearby, so I still like to think of this as a safe place,” said shopper Peggy Tomick. 

What the Tommy Bahama and Banana Republic closures mean for consumers

When major mall anchors leave, it usually has a notable impact on foot traffic. 

“Store closures can set off a ‘domino effect’ on local governments and businesses, which come[s] at a significant cost to society. For instance, closures can have a knock-on effect for nearby businesses – when large stores close, the foot traffic to neighboring establishments is also reduced, which endangers the viability of other local businesses,” according to independent academic institute IMD.

A 2011 study of Sonae Sierra, a global retail real estate company from Portugal, even revealed that “the total sales of the shopping malls are directly influenced by the number of anchors.”  

Some Towson Town Center Mall shoppers are worried about the domino effect, and reported hearing that other stores could close soon. 

More Closings

• 91-years-old historic bar is closing permanently
• Beloved 120-year-old gardening retailer closes permanently
• End of an era: Beloved diner shuts after 140 years

“It’s a bummer. I mean, it’s not the greatest mall to begin with, and now losing those stores,” said customer Tomick.

“[A J Crew employee] said that they raised the rent, which is really unfortunate. I guess it’s not a very prosperous mall, and now with higher rent, it’s going to be hard to keep a lot of the stores around.”

Shopper Sabrina Pitchford-Gorman told CBS-News that she thinks “it’s going to be a big impact financially, because you’re going to lose a lot of foot traffic, so you’re going to lose a lot of people who go to those stores. It’s also going to affect other stores, and, of course, the food court.”

Mall retailers closing stores in 2025

Analyzing 2023 data from Coresight Research reveals that malls account for about 5.5% of U.S. retail space, but capture about 12.9% of consumer retail expenditures. This suggests that malls generally outperform other retail formats per square foot. 

However, in 2025, a number of mall staples shut their doors for various reasons, including: 

• Forever 21: Entered bankruptcy and is closing all 350 U.S. stores as of 2025. Source: The Wall Street Journal
• Claire’s: Announced the closure of 235 Claire’s stores and 56 Icing stores (291 total) in North America by September 2025, as part of restructuring. Source: TheStreet
• Torrid: Planning to close 40-50 stores, later increased to 180 closures in 2025 as it shifts toward a more digital-focused model. Source: TheStreet
• Macy’s: Set to close 66 underperforming stores in 2025 as part of a larger plan (~150 stores by 2026) to shrink its footprint. Source: The Street
• JCPenney: Announced the closure of eight stores by mid-2025 due to expiring leases and market conditions (not a full footprint reduction).
• Joann (Joann Fabrics & Crafts): Closed all 850 stores after a second Chapter 11 bankruptcy filing. Source: PacerMonitor
• Dillards: Confirmed the closure of at least eight stores, citing shifts in retail strategy and focusing on more efficient operations. Source: TheStreet 

The bottom line for retail real estate

The mass departure from Towson Town Center is a part of a broader picture of mid- or B-tier malls across the United States. While top-tier malls continue to outperform thanks to their luxury offerings, mid-tier malls are struggling.  

The exit of Banana Republic, Tommy Bahama, Madewell, and Wockenfuss Candies from Towson Town Center doesn’t necessarily suggest the death of the mall, but simply another challenge.

As the Wall Street Journal suggested, some landlords hope to attract tenants that are able to pay higher rents. 

The bottom line is that landlords should bring in experiential tenants that can’t be replaced by Amazon. “Compared to lower-tier mall operators, top-tier mall operators have the financial resources to continually reinvest in and renovate malls to inspire consumers and meet evolving demand for experiences,” reports Coresight Research. 

Another challenge Towson Town Center is facing is local competition, with the $350 million Towson Row development and the new Whole Foods, just blocks away, attracting the area’s student and professional population. 

Could this be an opportunity for Towson Town Center to rebrand and revitalize? It’s possible, though there’s also a real chance that this could be another major blow for the mall.  

Related: 73-year-old furniture chain shuts stores for good, customers upset