These IL Retailers Are Closing Locations In 2026

Another tough year hit businesses in Illinois as several national chains announced closures and bankruptcies in 2025.

According to a Business Insider analysis, more than a dozen brands nationwide have announced closures this year, totaling over 3,700 locations by early November. This figure outpaced last year's total significantly, with just over 2,000 stores closing in 2024.

Going into 2026, Forbes said business owners and leaders should be prepared to adapt as the rise of Gen Z and artificial intelligence are poised to shift consumer attitudes. According to data from digital commerce platform Flywheel Ventures, TikTok Shop is projected to generate $87 billion i sales in 2026.

"TikTok Shop's explosive growth has fundamentally shifted the consumer shopping experience, and its arrival as one of the largest commerce platforms isn't a question of if, it's already here!” says Deren Baker, Flywheel’s CEO.

Additionally, with the rise of AI, consumers have begun to seek out trustworthiness of brands more often. With several data breaches impacting consumers and their private information, most are looking for signs that they can be safe while shopping online.

Here are the chains and businesses that closed many stores in 2025 or shut down entirely:

1. Joann Fabrics

The last remaining Joann fabrics stores in Illinois closed in early 2025 after a long struggle with its finances and filing for bankruptcy multiple times.

In June, competitor Michaels Companies Inc. announced it had bought the intellectual property and private label brands of Joann."

"This acquisition allows us to better serve both new and existing customers, respond to rising demand across categories, and build on our momentum as the destination for creating and celebrating in North America," said David Boone, Chief Executive Officer at Michaels.

2. Kroger

In June, Kroger announced that it planned to close about 60 stores throughout the country over 18 months. While specific stores weren't named, many media outlets reported that locations had closed or were set to close soon, including one store in Illinois.

In the major chain's first quarter earnings report Kroger said it recognized an impairment charge of $100 million related to the planned store closings. The company said it expects a "modest financial benefit" after the closures

"Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance," the company said in a statement.

3. Forever 21

Teen clothing retailer Forever 21 filed for bankruptcy in March and announced it planned to end its U.S. operations in 2025. Originally, the mall staple filed for bankruptcy in 2019, but problems persisted.

It cited rising costs, economic challenges and competition in the fats-fashion industry as reasons for the company's closure.

4. Walgreens

Continuing its trend from 2024, Walgreens announced it would close a significant amount of stores by the end of this year. The pharmacy chain is expected to close more than 400 stores by the end of the year.

The Illinois-based Walgreens Boots Alliance said it is finalizing a "significant multiyear footprint optimization program" to close about 1,200 underperforming stores. More closures are expected in the coming years.

"We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics, which have eroded pharmacy margins," said Tim Wentworth, CEO of WBA.

5. Carter's

In October, children's clothing retailer Carter's, known for its popular OshKosh B'gosh brand, announced the closure of 150 stores and reduction of 300 jobs over the next three years.

The company also said it would suspend any new store openings in the U.S.

Carter's said the decision was due to changes in its customer base and higher tariffs.

6. Kohl's

Retail giant Kohl's announced it would close underperforming stores in January, giving March 29 as the closing date for the locations it planned to shutter.

The closures of the Wisconsin-based company came as part of a transformation that included cutting its corporate workforce and ending Amazon returns in some stores.

"While Kohl's continues to believe in the health and strength of its profitable store base, these specific locations were underperforming stores," the company said in a release.

7. GameStop

After closing 1,000 stores across the world in 2024, video game retailer GameStop said it wasn't done. In March, the company said it still expected to close a significant number of additional stores and looked to invest cash in cryptocurrencies.

A majority of its worldwide closures were announced in the U.S., with 590 locations shutting down.

8. At Home

Home furniture and decor retailer At Home announced in September it would close half of its Illinois locations after filing for bankruptcy. The company cited a "challenging commercial environment brought on by both broader economic and retail-specific market pressures" as a reason for the closures.

Four stores in the Prairie State and nearly 30 stores nationwide closed their doors.

Ownership of the company was transferred to a group of hedge funds and other firms based in New York City and San Francisco.

9. Claire's

Mall-based teen accessory retailer Claire's announced it filed for bankruptcy in August. Claire's Holdings LLC also announced that it sold it's North American business to a private equity firm for $104 million.

In a court filing, the company listed more than 290 stores it planned to close.

"Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders," said Claire's CEO, Chris Cramer.

10. JCPenney

Department store JCPenney closed eight stores in May, but said the closures were "isolated" and didn't indicate that any additional stores would follow suit.

JCPenney did, however, announce it was selling dozens of stores, including five in Illinois. The stores were purchased by Onyx Partners in a nearly $1 billion deal.