Various factors such as inflation, changes in consumer trends and the rise of e-commerce have created a bleak outlook for many companies. In the last few years, iconic restaurant chains, self-service stores and stores with different themes have had to close their stores or went bankrupt as a result of the financial crisis. This is a problem that has become very notorious since the pandemic and does not seem to have a quick solution.
2024 was a particularly bad year for many businesses. Most of them were trying to stay afloat after the COVID-19 pandemic, which represented a real challenge for many companies that were left feeling the effects of this situation that hit the whole world.
JoAnn Fabrics announces large number of store closures
Recently, the craft supply chain JoAnn Fabrics announced the closure of several of its stores. This decision was made even at a time when homemade products have experienced an upswing thanks to social networks such as Instagram or TikTok.
JoAnn Fabrics, known for selling fabrics, tools and materials for creative projects, filed for bankruptcy in 2024. The reasons for this bankruptcy had to do with the steady decline of its sales. Although the company tried to recover, its attempts were unsuccessful.
It is worth noting that this company, founded in 1969, was considered to be the most important supplier for art and craft enthusiasts. However, in recent years it was facing a crisis that forced it to close numerous branches in Iowa, Maryland, New York, North Carolina and Pennsylvania.
However, this is not the only company that could not survive the financial crisis. Dozens of well-known brands had to close their doors permanently, reduce the number of stores or rethink their business strategy. In all these cases, the drop in sales could be considered their main problem.
The sad case of City Party and Family Dollar
An example of this is Party City, which has announced the end of its operations by 2025. The definitive closure of all its branches will take place on February 28. All its employees received a letter of termination, in which they were also notified that they will not receive any severance pay. In addition, at that date, their employee benefits will be terminated.
Family Dollar is another case that demonstrates how difficult it is for businesses to face the financial crisis. The company began a process of closing stores in 2024 and plans to continue this year. It is estimated that more than 370 stores will be out of service. According to a report published by the specialized website AmericaMall a Retail, the decision is due to financial pressures, which were then aggravated by the decrease in SNAP (Supplemental Nutrition Assistance Program) benefits, in addition to the challenging economic environment in which the entire United States is immersed.
Other companies that went out of business or were on the verge of bankruptcy in 2024
Here are more companies in the U.S. that have collapsed during 2024 or were close to bankruptcy:
- Advance Auto Parts: closed 523 corporate stores, 204 branches and four distribution centers over the past year.
- Foot Locker: plans to close 400 stores by 2026 and renovate 280 branches.
- Macy’s: will close 65 stores by the end of January 2026 and will soon close another 150 branches throughout the country.
- 7-Eleven: is in the middle of a process of closing 444 stores and is evaluating a renovation of its operations in order to remain in the market.
- Walgreens: plans to close 2,150 branches by 2027.
- Party City: plans to close all its stores permanently by February 28, 2025.
- Red Lobster: closed 100 restaurants by 2024.
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