6 Mall Favorites That Are Most Likely To Go Bankrupt and Close In 2027

Malls are struggling to keep customers, which might be evident when you look at all the mall retailers closing up and declaring bankruptcy.

Forever 21 and The Body Shop closed all their U.S. stores in 2025 and 2024, respectively. The Body Shop has since returned to the U.S. online, and Forever 21's brand owner has lined up new partners to sell it online here. At Home filed for bankruptcy in June 2025 and emerged that October with 229 stores in 39 states, down from about 260.

The trend continued in 2026. Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 in January and emerged in June under a new name, Exemplar Luxury Group. It closed roughly 100 stores along the way, mostly Saks Off 5th locations, and now runs 49 full-line stores.

Store closings and bankruptcies are still a trend heading into 2027, and more retailers could follow. Here are a few where you may be able to put extra cash in your pocket if they announce store closing or going out of business sales.

Victoria's Secret

Victoria's Secret has spent years shrinking its mall footprint, shuttering hundreds of stores since 2020 to keep up with changing consumer habits. It closed 32 company-operated stores in fiscal 2025 while opening 16.

The turnaround now appears to be working. Net sales rose 10% to $1.6 billion in the second quarter of 2026, and the company raised its full-year sales outlook in September. A bankruptcy filing looks unlikely for now, but its heavy mall presence means it could keep trimming underperforming locations.

JCPenney

JCPenney filed for bankruptcy in 2020 but continues to operate about 640 stores across the U.S. Now part of Catalyst Brands, the retailer closed a handful of stores in 2025 and a couple more in 2026, and it has said it doesn't plan significant closures.

Its parent company has had a rougher year. Eddie Bauer, another Catalyst brand, headed into bankruptcy in early 2026, with its North American stores expected to close. Declining mall traffic and ongoing pressure from online competitors mean more JCPenney closures wouldn't be surprising if sales don't improve.

Sleep Number

Sleep Number (SNBR) has been a fixture in the mattress and bedding industry for decades, known for its adjustable "sleep number" beds. In March 2026, the company issued a "going concern" warning due to high debt, liquidity challenges, and widening losses. Net sales dropped 16% to $1.4 billion in 2025, and its net loss deepened to $132 million.

Sleep Number filed for Chapter 11 bankruptcy on June 12, 2026, and sold substantially all of its assets to an affiliate of Sleep Country Canada. The sale closed on July 31, 2026, keeping the business running with hundreds of stores still open. It's worth watching whether the new owner trims underperforming locations in 2027.

Macy's

Macy's has closed about 135 underperforming stores since early 2024 as part of its "Bold New Chapter" turnaround plan, including 66 in 2025 and 14 more in the first half of 2026. The strategy focuses on upgrading its strongest Macy's stores, growing its luxury nameplates Bloomingdale's and Bluemercury, and boosting digital sales.

The plan seems to be paying off. Comparable sales rose 2.7% in the second quarter of 2026, and the company raised its full-year guidance in September. Bankruptcy isn't on the horizon, but Macy's still plans to close about 65 more stores through 2028 and hasn't said which ones, so it's worth keeping an eye on your local store.

Express

Express, a mall apparel retailer, has struggled for years with declining mall traffic and shifting consumer habits. It filed for bankruptcy in April 2024 and closed about 95 stores before Phoenix Retail, a joint venture of WHP Global and mall owners including Simon Property Group and Brookfield Properties, bought most of the business that June.

Express still operates more than 400 stores, along with its website and app. As a private company, it shares little about its finances, so further closures in 2027 can't be ruled out given ongoing pressure from online competitors and a shrinking mall presence.

Kohl's

Kohl's has been experimenting with store-in-store concepts like Sephora and Babies "R" Us to attract shoppers, but sales have kept sliding amid competition from discount chains and e-commerce. Net sales fell 4% to $14.8 billion in 2025.

The decline is slowing, though. Second-quarter 2026 net sales dipped just 0.9%, and Kohl's raised its full-year outlook and restarted share buybacks in August. Its CEO said in March that there are no plans for broad store closures, with more than 90% of its roughly 1,150 stores profitable. A bankruptcy filing isn't expected, but isolated closures could continue if the turnaround stalls.

Bottom line

Malls are still struggling, and 2026 brought major bankruptcies from Saks Global and Sleep Number. Several retailers on this list are showing signs of recovery heading into 2027, but closings can come quickly when sales lag or debt piles up.

However, those closings could help you save money if you find ways to keep more cash in your wallet that you can use for other financial goals and to eliminate some money stress. 

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