From Main Street to Malls: A Wave of Bankruptcies Reshapes New Jersey's Retail Landscape

The familiar storefronts that have long defined New Jersey's shopping corridors—from bustling malls to community mainstays—are changing at a rapid pace. A combination of economic headwinds, evolving consumer behavior, and policy shifts has triggered a significant wave of retail restructurings and closures across the Garden State.

Data from Wall Street rating agency S&P Global reveals a concerning trend: 2025 saw 785 corporate bankruptcy filings, marking the third consecutive annual increase and reaching the highest level since 2010 in the aftermath of the Great Recession.

"The sustained rise in filings aligns closely with the cycle of rising interest rates," explains Umer Khan, an industry expert at S&P Global. "Companies with weaker balance sheets found themselves trapped, unable to refinance maturing debt under much stricter and costlier conditions. For many, bankruptcy became a necessary tool for survival and reorganization."

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It's crucial to note that a Chapter 11 bankruptcy filing is not an epitaph. The process, as defined by U.S. courts, allows a company to propose a reorganization plan to continue operations while managing its debts. Historic comebacks by giants like General Motors and Marvel Entertainment underscore this point.

However, the outlook remains challenging. Executives at Simon Property Group, a major mall owner with holdings including The Mall at Short Hills and Rockaway Townsquare, warn of continued turbulence. CEO David Simon told investors in February that tariff policies "disproportionately pressure retailers" and risk harming smaller players, while giants like Walmart and Amazon remain more insulated. CFO Brian McDade echoed the sentiment, bluntly cautioning, "Yeah, we'll have bankruptcies" in 2026.

The fallout from the pandemic era—soaring inflation, record personal debt, and a permanent shift toward e-commerce—has left lasting scars. New Jersey has felt this acutely, losing anchors on its iconic commercial routes like Routes 4, 17, and 46, and within its suburban malls.

Notable Exits and Restructurings

The list of affected businesses reads like a roster of recent retail history:

• At Home: The home decor chain closed three NJ locations in 2025 as part of its bankruptcy exit, citing broader economic pressures and tariff impacts.
• Bed Bath & Beyond / BuyBuy Baby: The iconic blue coupon issuer filed in 2023, closing 13 NJ stores. Analysts point to a fatal lag in adapting to online shopping. Its subsidiary, BuyBuy Baby, shuttered its short-lived Paramus store and others by 2024.
• Christmas Tree Shops: All 70 stores, including 10 in NJ, were liquidated in 2023.
• Express: The mall fashion retailer closed all 15 NJ stores in 2025, unable to keep pace with competition and changing trends.
• Joann: After a pandemic-era crafting boom, the fabric and crafts chain closed its final 11 NJ locations in May 2025.
• Party City: Headquartered in Woodcliff Lake, it filed for Chapter 11 for the second time in December 2024, closing all 700 stores nationwide.
• Pinstripes: The 'eatertainment' venue at Garden State Plaza closed in 2025 following its bankruptcy filing.
• Rite Aid: The pharmaceutical chain closed its remaining 33 NJ locations in 2025 after a prolonged bankruptcy.
• Saks Fifth Avenue: In a stunning move, the luxury retailer filed for bankruptcy in January 2026, burdened by debt from its Neiman Marcus acquisition and post-pandemic challenges. Its Saks OFF 5th outlet closed three NJ stores.

Even without formal bankruptcy, retrenchment continues. Macy's plans to close two NJ stores in 2026, while pharmacy rivals CVS and Walgreens have shuttered hundreds of locations nationally in recent years.

Voices from the Community

Michael Torres, Small Business Advocate in Newark: "This isn't just about big chains. Each closure creates a ripple effect—lost jobs, empty storefronts that depress property values, and a loss of community character. We need policies that support brick-and-mortar viability, not just more tax breaks for online giants."

Lisa Chen, Retail Analyst at Fairleigh Dickinson University: "The data shows a Darwinian restructuring of retail. The survivors are those who seamlessly integrated online and in-person experiences and tightly controlled debt. The pandemic accelerated trends, but the underlying issue was a failure to evolve business models for a digital-first consumer."

Frank Russo, Former Store Manager from Paramus (Fired up): "It's an outrage. We built careers at these places. Then you get a call saying the whole state is closing. Wall Street gets its restructuring, but what about us? The 'retail apocalypse' wasn't an act of God—it was terrible corporate strategy, greed, and politicians playing games with tariffs that blew up Main Street."

Priya Sharma, Shopper from Jersey City: "It's sad. The mall feels emptier. You miss the experience of browsing. But let's be honest, when times got tight, the 20% coupon wasn't enough if I could find it cheaper with two clicks online and have it tomorrow. Convenience won."

Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: [email protected]; Twitter: @danielmunoz100