The retail sector has faced financial challenges this year that have led to store closures, bankruptcy filings, and, in some instances, companies going out of business.
Among the challenges retailers have faced are the higher cost of doing business, driven by rising inflation; rising interest rates on their debt obligations; and shrinking foot traffic at brick-and-mortar retail locations as consumers become more reluctant to spend money in uncertain economic times.
Certain iconic retailers have revealed plans to close hundreds of store locations, including Walgreens’ closing of 1,200 stores and CVS’s closing of 1,171 locations.
Retail chains file bankruptcy and shut down
Pharmacy chain Rite Aid filed for Chapter 11 protection a second time on May 5, 2025, and began closing all of its stores, consisting of 1,288 locations.
Fabric and crafts retailer Joann filed for Chapter 11 bankruptcy in January 2025 and in February decided to liquidate its stores.
Teen apparel retailer Forever 21 in March 2025 filed for bankruptcy, with plans to close down over 350 of its U.S. stores.
Not all retailers that close stores file for bankruptcy.
In an ironic twist, a discount retail chain owned by a liquidator is closing down stores that the company has used to liquidate other stores’ merchandise.
Image source: Getty Images
That’s Cheap shuts down 3 stores
Discount retail liquidation outlet chain That’s Cheap has shut down half of its store locations in recent weeks, with its most recent closing in the Natomas area of Sacramento, Calif., on Sept. 27.
That’s Cheap revealed the store’s closure on its Facebook page.
Before closing its Natomas store, the liquidation outlet chain had recently closed two other Sacramento stores located in Country Club Plaza and in the Orangevale neighborhood.
That’s Cheap existing stores:
- Richards Boulevard, Sacramento, Calif.
- Arden Fair Mall, Sacramento, Calif.
- 45 W. Main Street, Woodland, Calif.
That’s Cheap, which is owned by Reverse Logistics Liquidators or RL Liquidators LLC, continues to operate three stores, one located on Richards Boulevard and one near Arden Fair Mall in Sacramento, and another in Woodland, Calif., according to its website.
RL Liquidators did not reveal why it closed the three That’s Cheap stores. The company did not immediately reply to a request for comment.
Related: 47-year-old furniture retailer closes all stores, no bankruptcy
The discount retail chain sells excess inventory liquidated from manufacturers and retailers within the United States. On average, items sell for about 50% of their retail value, according to the company website.
That’s Cheap sells discount goods quickly
The company asserts that it sells its merchandise at low prices to sell quickly and circulate new merchandise into stores to move them as well.
That’s Cheap’s inventory includes furniture, appliances, home décor, home supplies, toys, and other related items.
“RL Liquidators created multiple proprietary B2C sales channels designed to move any category of retail product, at any volume, while producing the highest recovery rates in the industry,” RL Liquidators asserted on its website. “We do not rely on any third party websites or liquidation outlets.”
RL Liquidators also operates another similar chain, Falling Prices, which has 10 locations nationwide in Folsom, Lakeport, Red Bluff, Redding, Santa Rosa, and Woodland, Calif, Indianapolis, Holbrook, and Chino Valley, Ariz., and Newport News, Va.
Falling Prices stores:
- Folsom, Calif.
- Lakeport, Calif.
- Red Bluff, Calif.
- Redding, Calif.
- Santa Rosa, Calif.
- Woodland, Calif.
- Indianapolis
- Holbrook, Ariz.
- Chino Valley, Ariz.
- Newport News, Va.
The Falling Prices discount store concept sets every item in the store at the same price on Tuesdays and reduces prices each day until everything in the store is sold by the end of the day Saturday.
More closings:
- Major furniture manufacturer closes down, no bankruptcy
- Iconic pizza chain’s franchisees close multiple restaurants
- Iconic retail chain closing over 100 stores in bankruptcy
The process starts again on the following Tuesday with more new merchandise for sale.
Both That’s Cheap and Falling Prices operate Tuesdays through Saturdays and are closed Sundays and Mondays.
Related: 155-year-old mattress firm shuts down factory, no bankruptcy
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