Retailers often cite economic challenges, including rising costs of labor and products driven by inflation and increased interest rates on debt obligations, as well as retail theft, as reasons for closing store locations, filing for bankruptcy, selling assets, and sometimes closing down their businesses.
Several iconic retail chains have closed hundreds of stores over the last year, with some filing for bankruptcy and others going out of business.
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Beloved party retailer Party City filed for Chapter 11 bankruptcy protection for the second time in December 2024, about 14 months after exiting its first bankruptcy.
Related: Largest fast-food chain’s franchisee files for Chapter 11 bankruptcy
The retail chain has closed all but 26 remaining locations across the country, according to its website.
Forever 21 in March 2025 filed for Chapter 11 bankruptcy, shut down all of its stores, liquidated, and ceased its business in May 2025.
Joann Fabrics filed its second Chapter 11 bankruptcy in January 2025 and closed all of its stores and went out of business, also in May.
Home goods retailer At Home filed for Chapter 11 bankruptcy on June 16 in the U.S. Bankruptcy Court for the District of Delaware, citing unsustainable costs due to tariffs and a slowdown in consumer spending.
The retailer asserted that it will close 26 underperforming stores by Sept. 30.
Major 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.
Rite Aid closes hundreds of stores in bankruptcy
The retail chain filed for Chapter 11 protection a second time on May 5, 2025, as New Rite Aid LLC, and has begun closing hundreds of its remaining stores.
Rite Aid filed for its second bankruptcy after failing to find a buyer for its assets and being unable to secure financing to continue operating.
The retail chain has filed eight notices of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey, designating 947 of its nearly 1,240 locations for closing.
Rite Aid sells its Thrifty Ice Cream brand in a bankruptcy auction.Â
Image source: Thrifty Ice Cream
Rite Aid sells Thrifty Ice Cream brand
As part of its bankruptcy case, Rite Aid is selling its Thrifty Ice Cream brand for $19.2 million to Hilrod Holdings LP, whose general partner, Hilton Schlosberg, is also co-founder and CEO of Monster Beverage Corporation.
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The debtor filed a notice of successful bidders in the U.S. Bankruptcy Court for the District of New Jersey on June 26, after Hilrod Holdings prevailed at an auction for the Thrifty Ice Cream assets held on June 24.
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The notice asserted that Hilrod would pay a $4 million deposit on June 26 and pay the remainder of the sale price of $15.2 million by July 2.
Optimal Investment Group Inc. was named the back-up bidder for the Thrifty assets at the auction with a bid of $19.126 million to purchase the ice cream brand if Hilrod’s acquisition falls through.Â
A sale hearing will be held on June 30 to approve the sale transaction. Objections to the sale were due by 5 p.m. Eastern time on June 27.
The notice calls for a sale closing date of July 22, 2025, or a date agreed to in writing by the buyer and seller.
Related: Major shipping company files for Chapter 11 bankruptcy