4 retail brands that shut down in 2025 — and reboots to come

Core Insights - The American high street experienced significant bankruptcies in 2025, affecting well-known brands like Rite Aid and Party City [1][2] Group 1: Bankruptcy Trends - A combination of rising debt and changing consumer habits led to the downfall of many household names, as inflation prompted shoppers to favor online retailers like Amazon and large stores like Target [2] - Forever 21 filed for bankruptcy for the second time in six years in March 2025, having previously declared bankruptcy in 2019 [3][4] - Rite Aid filed for bankruptcy in 2023 due to over $4 billion in debt, exacerbated by legal issues related to the opioid crisis, and filed again in May 2025 [8] Group 2: Company-Specific Details - Forever 21, once generating over $4 billion in annual revenue, struggled to adapt to changing consumer preferences and faced competition from brands like Shein and Temu [3][5] - Rite Aid, which peaked with over 5,000 locations, closed 500 stores to reduce debt but ultimately shut down its last 89 stores in October 2025, transferring millions of prescriptions to competitors [7][8]