What Franchises Are Closing In 2022?

Welcome to 2022: let’s get growing. The last 18 to 24 months of the pandemic have been challenging for many businesses, but as we head into 2022, data shows the franchise industry is thriving.

The coast isn’t clear just yet; we may still lose some more beloved chains before 2022 comes to a close. Keep reading to learn about a few of the chain restaurants that may wind up closing in the coming year.

This is, in part, because many businesses had already shut their doors in 2020. But it is also a result of consumers returning to shop in person after the vaccine rollout and having more spending power from federal stimulus checks.

More than 15,500 stores closed in 2020, according to Forbes, including retail titans like Macy’s and Bed Bath & Beyond — and the pummeling isn’t over yet. Hundreds more closures have happened since then, and more than one company gave up all physical locations. Here are the biggest losses.

When will Carter’s close?

In October 2020, Carter’s announced that they would be closing up to 200 stores by the end of 2022. While the closings will impact both Carter and OshKosh B’gosh brands, the retailer also announced that they plan to open 100 stores over the next five years.

The company expects to close 200 stores by the end of 2020 and another 100 store closures in 2021.

Art Van Furniture went into Chapter 7 bankruptcy in April 2020 and company-owned stores are closed as the retailer’s assets are liquidated. It was announced in May 2020 that 27 of its 300+ stores have been purchased and will reopen as Loves Furniture.

Abercrombie & Fitch is not going out of business. In December 2020, the clothing retailer announced they would closing 7 flagship stores. The larger stores depend on foot traffic for a significant part of their revenue, which has been hurt because of the pandemic.

On August 12, 2020, it was announced that the storied retailer would be acquired by Authentic Brands Group LLC and SPARC Group LLC, pending approval. If approved, the new owners would continue to operate at least 125 Brooks Brothers locations. In July 2020, Brooks Brothers filed for Chapter 11 bankruptcy protection.

Temporary closings: Some stores have closed their brick-and-mortar stores temporarily, sometimes shifting their efforts to their online store. Many of these stores are now reopening. Permanently reducing locations: Many stores have had to permanently close some of their locations while keeping others open.

24 Hour Fitness is not going out of business. As a result of temporary closures due to the coronavirus pandemic, the fitness gym chain filed for Chapter 11 bankruptcy in June 2020. The company has already secured funding to remain open but will be permanently closing 100 of its over 400 locations nationwide.