In style low cost retailer proclaims closure amid monetary struggles
Financial uncertainty and weakening shopper spending have compelled many retailers, even long-established chains, to shut shops in efforts to revive profitability as they navigate more and more unstable monetary occasions.
Whereas low cost retailers have turn into the popular buying areas for value-focused customers, one well-known model has struggled to realize the identical success.
Household Greenback’s mum or dad firm, Greenback Tree, revealed it might start a spherical of retailer closures in 2024, shuttering 600 Household Greenback areas and one other 370 as leases expire, bringing the overall closures to almost 1,000 models.
“We imagine rationalizing these unprofitable areas will assist to unlock significant worth on the enterprise stage,” stated Greenback Tree CEO Rick Dreiling in an earnings name.
On the time, Household Greenback’s same-store gross sales had fallen 1.2% within the fourth quarter of fiscal 2023.
In July, Greenback Tree (DLTR) bought Household Greenback to Brigade Capital Administration, LP, and Macellum Capital Administration, LLC for round $1 billion after shopping for it for $9 billion in 2015. The non-public fairness acquisition aimed to assist the corporate refocus on its core enterprise, open new shops, and advance its long-term progress technique.
Now, the brand new house owners look like reviewing Household Greenback’s remaining 7446 areas nationwide, probably assessing underperforming shops for future closures as soon as leases expire.
One of many newest casualties ensuing from these vital adjustments is the Household Greenback in Outdated Orchard Seaside, Maine. The shop, situated at 8 Heath Road, is ready to shut completely on November 15, in line with WCYY. Its closure will convey Household Greenback’s retailer rely in Maine all the way down to 52.
As with most shutdowns, the Outdated Orchard Seaside Household Greenback is holding a clearance sale to liquidate stock.
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In accordance with a buyer’s Fb put up, the placement is doing a sequence of markdowns, which different customers additionally confirmed: 30% off every part by October 27, adopted by 50% off the subsequent week, and 80-90% off within the ultimate weeks earlier than closing.
One other Fb person famous the shop’s proximity to a Greenback Common (DG) throughout the road, commenting, “It was solely a matter of time. Actually shocked they stored each open for this lengthy however Greenback Common was constructed by itself and opened in 2019 whereas this was in a leased constructing so it’s not a lot of a shock.”
Household Greenback is not alone in its struggles; the closures come amid a broader wave of retailer shutdowns throughout the retail sector.
Whereas the Nationwide Retail Federation initiatives total retail gross sales to develop between 2.7% and three.7% in 2025 over the 12 months prior, this nonetheless represents a slowdown in comparison with 3.6% in 2024.
In accordance with CoreSight Analysis, introduced retailer closures in 2025 are up 67% in comparison with final 12 months.
Legacy retailers, corresponding to Macy’s (M), JCPenney, and Kohl’s (KSS), have all confronted mass closures, whereas once-iconic chains corresponding to Get together Metropolis, Joann, and Endlessly 21 have filed for Chapter 11 chapter after a protracted battle to outlive.
As of July 4, practically 6,000 retail closures have been reported nationwide, outpacing simply over 4,000 new openings and sharply exceeding the three,496 closures recorded throughout the identical interval in 2024.
“The implications of those closures go far past the retail flooring,” stated President and Chief Lending Officer at Permitted Funding Shmuel Shayowitz. “Hundreds of employees are shedding their jobs, lots of them in communities the place retail employment has traditionally been one of many greatest anchors. Vacant storefronts have gotten an more and more widespread sight, and declining industrial property values are the norm.
“For customers, the fallout means fewer selections, diminished entry to in-person buying, and, in some instances, greater costs as a result of lowered competitors,” he added.
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This story was initially reported by TheStreet on Oct 25, 2025, the place it first appeared within the Retail part. Add TheStreet as a Most well-liked Supply by clicking right here.
