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Forever 21, Hooters, and 7 other restaurant and retail chains going bankrupt right now

Forever 21, Hooters, and 7 other restaurant and retail chains going bankrupt right now

2024 was tough for retailers and restaurants. 2025 could be more of the same

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A Forever 21 store in Herald Square in New York City.
A Forever 21 store in Herald Square in New York City.
Image: Drew Angerer (Getty Images)

2024 was a tough year for retailers and restaurants across the U.S., and 2025 may present a similarly challenging landscape.

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Coresight Research, a retail and technology data platform, predicts an escalation this year, with around 15,000 stores expected to shutdown. Among the notable closures are some major names like Hooters and Big Lots (BIG).

“Inflation and a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024,” said Coresight Research CEO Deborah Weinswig. She noted that retailers who failed to adapt their supply chains and implement cost-cutting technologies were hit the hardest, as consumers increasingly opted for the convenience of online shopping, turning to e-commerce giants like Amazon (AMZN), Temu, and Shein.

In 2024, U.S. store closures reached 7,325 – the highest number on record since 2020. At the same time, store openings totaled 5,970, marking the highest figure since 2012. Despite this, closures outpaced openings, resulting in a net loss of 1,355 stores last year.

2025 could be eerily similar. Several major retailers have already announced significant closures and bankruptcy filings. Big Lots plans to close 601 stores, while Party City, which filed for bankruptcy, will shut down 738 locations. Other companies, including Forever 21 are also among the growing list of brands going bankrupt.

Despite the closures, new store openings are expected to remain steady. Companies like Aldi, JD Sports (JD), and Burlington Stores (BURL) are leading the way with new expansions in 2025. However, the overall trend suggests a tough year ahead for traditional retail. As consumers continue to shift to online shopping, retailers that embrace new technologies may be the ones to survive and avoid further closures.

In the meantime, we’ve compiled a list of the retail and restaurant chains going bankrupt right now. Let’s take a look.

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1. Forever 21

A Forever 21 in Union Square in New York City.
A Forever 21 in Union Square in New York City.
Image: Drew Angerer (Getty Images)

Forever 21, once a pioneer in fast fashion, has filed for Chapter 11 bankruptcy for the second time on March 16, citing fierce competition from overseas retailers like Shein and Temu.

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Brad Sell, chief financial officer of F21 OpCp, explained that the company has been “unable to find a sustainable path forward due to competition from foreign fast fashion brands, which have undercut pricing and margins through the de minimis exemption, as well as rising costs, economic challenges, shifting consumer trends.”

As part of the Chapter 11 proceedings, Forever 21 will begin winding down its U.S. operations. While closing stores, the company will continue to operate its website and explore selling assets or restructuring. The retailer will remain open during this transition, but after being saved from liquidation in 2020, it now faces uncertainty in a highly competitive market.

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A Hooters at the Ocean City Boardwalk in Maryland.
A Hooters at the Ocean City Boardwalk in Maryland.
Image: gsheldon (Getty Images)
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Image: Justin Sullivan (Getty Images)
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4. Joann

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Image: Bloomberg (Getty Images)
  • The arts and crafts retailer has filed for Chapter 11 bankruptcy twice within the span of one year. It initially filed in March 2024, and again in Jan. 2025.
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5. Party City

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Image: NurPhoto (Getty Images)
  • The party’s over at Party City. After nearly 40 years in business, the chain said it was planning to go out of business, had filed for bankruptcy, and was closing about 700 of its stores across the U.S.
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Image: Bruce Bennett (Getty Images)
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7. Macy’s

A Macy’s in Brooklyn, New York.
A Macy’s in Brooklyn, New York.
Image: Spencer Platt (Getty Images)
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8. Kohl’s

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Image: Bloomberg (Getty Images)
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9. JCPenny

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Image: SOPA Images (Getty Images)
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