Formerly bankrupt giant retail chain closing more stores

The struggling retailer has been trying to reinvigorate sales.

Feb 12, 2025 - 21:37

Formerly bankrupt giant retail chain closing more stores

It's probably been a long time since you last ventured into an indoor shopping mall.

Even if you consider yourself a shopping aficionado, you likely know the best deals are rarely found inside those former shopping meccas.

Whether you're shopping for formal wear or sneakers, pet supplies or crafts, you can usually find the best selection and prices anywhere but within a mall.

The decline of shopping malls has been a long time coming, but their popularity certainly didn't just dwindle overnight. It took a long time for these shopping behemoths to fall from grace.

More Retail:

Back in their heyday during the 1980s and 1990s, over 50% of all U.S.-based retail activity took place at a mall. The average shopper spent 12 hours per month wandering around malls, seeking the best deals or finds.

And that probably doesn't account for the time it took to drive to said mall -- or to find a parking space and a bathroom.

All that time spent was a big commitment, and many shoppers eventually tired of the effort it took to visit a mall whenever the need arose.

Shoppers walk through the Fashion Centre at Pentagon City, a shopping mall in Arlington, Virginia.
SAUL LOEB/Getty Images

Malls continue to struggle

While malls enjoyed several decades of relatively unchallenged supremacy in the shopping world, eventually that reign began to wane.

In the 2000s, with the advent of the internet, more shoppers opted for convenience. It suddenly became much less time intensive -- and far easier -- to refine your search for something online and have it appear at your doorstep days later.

Even if shoppers weren't exclusively doing their shopping online, there were better opportunities elsewhere.

Outdoor outlet malls, where oversupply or last season's goods are often sold, became more popular. Destinations like Tanger Outlets saw outsized growth over the years, as customers opted for cost savings and ease of access over the mall experience.

As foot traffic declined, it became harder for tenants to justify paying the outsized rent malls often charge for their prime locations. Many mall retailers filed for bankruptcy or closed hundreds of locations -- or both -- including Sears, JC Penney, Express, Rue 21, The Body Shop, and Forever 21.

JC Penney closes more stores

JC Penney, which filed for Chapter 11 bankruptcy protection in 2020 after bearing the brunt of covid's strain, has never quite recovered from the past.

The mall flagship retailer closed approximately 200 stores, reducing its fleet count from over 800 to just over 600.

It also ended its formerly successful partnership with Sephora, the LVMH-owned luxury beauty retailer that had offered a glimmer of hope for the return of foot traffic.

And now, JC Penney will close yet more stores in 2025.

The retailer will close eight stores, according to SB360 Capital Partners, which handles liquidations sales and operations for troubled retailers.

The closings are:

The Shops at Tanforan, 1122 El Camino Real San Bruno, CA
The Shops at Northfield, 8568 E 49th Avenue Denver CO
Pine Ridge Mall, 4201 Yellowstone Avenue Pocatello ID
West Ridge Mall, 1821 SW Wanamaker Road Topeka KS
Annapolis Mall, 1695 Annapolis Mall Road Annapolis MD
Asheville Mall, 3 S Tunnel Road Asheville NC
Mall at Fox Run, 50 Fox Run Road Newington NH
Charleston Town Center, 401 Lee Street E Charleston WV

"While we do not have plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year," a JC Penney spokesperson said.