It’s easy to get confused about what’s happening with Chico’s these days. Type “Is Chico’s going out of business?” into Google and you’ll get plenty of rumors, store closure stats, and a few headlines that make things sound dire. But the real story is more complicated than a simple yes or no.
So, let’s clear things up. Chico’s isn’t going out of business entirely, but it has changed. The brand you might know from the mall is definitely not what it was ten years ago. But it’s not disappearing just yet.
Why People Think Chico’s Is Shutting Down
Over the past several years, a lot has changed for Chico’s and other women’s fashion brands that relied on being in malls. Fewer people are spending a day at the mall, especially after the ups and downs since 2020. COVID-19 had a huge impact; stores had to close for months, mall traffic dropped off, and people turned to online shopping for basically everything.
Chico’s also faced a new wave of online-only competitors. Fast-fashion chains and young brands that built their business on Instagram or TikTok grabbed a big slice of the market. For retailers like Chico’s, who’d always counted on return customers stopping by on their way to a movie or lunch, this was a serious challenge.
And then there’s just the reality of the American mall in 2024. Even before the pandemic, many malls saw declining foot traffic. Anchor stores left, and smaller brands had to rethink their business just to stay afloat.
Store Closures and Corporate Shakeups
So, what did Chico’s do in response? Over the past several years, the company closed a lot of stores—at least 200 locations nationwide since 2019. In Canada, Chico’s actually filed for bankruptcy protection in 2020 and closed all its Canadian locations. That move might sound extreme, but it’s actually pretty common for American retailers who struggle to make international operations profitable.
In the United States, things were rough, but not quite as severe. Chico’s looked at their balance sheets and made a call to shut down underperforming stores—the ones that were consistently losing money or not bringing in enough shoppers. It hurt for employees and regular customers in those communities, but from a business perspective, keeping those locations open just wasn’t working.
If you spent any time in a suburban mall in the last decade, you probably noticed fewer Chico’s stores. For many longtime customers, this looked a lot like the company was on its last legs. But that wasn’t quite the case.
Ownership Change and Restructuring: A New Path
As Chico’s cleaned up its store footprint, there was an even bigger change behind the scenes. In early 2024, private equity firm Sycamore Partners announced that it was buying Chico’s. The deal took the retailer off the public stock market—and meant that, for the first time in decades, Chico’s didn’t have to answer to shareholders every quarter.
Being private can actually give a brand some breathing room. Chico’s doesn’t have to report financial results every three months, so the company can try things out, adjust, and plan ahead instead of constantly worrying about next week’s earnings call.
Sycamore Partners has experience with other retail brands, so they have a playbook for restructuring companies that have hit a rough patch. In the weeks following the acquisition, Chico’s brought in new executives, shuffled its management team, and started looking for ways to become a leaner, more focused operation.
Of course, change isn’t just in the boardroom. The company started making adjustments to how it uses its stores, how it manages inventory, and how it connects with customers.
So, Are There Still Chico’s Stores Left?
Yes, you can still walk into a Chico’s store in plenty of cities across the U.S. There just aren’t as many as there once were. The company’s physical presence is much smaller these days, and some malls that used to feature a Chico’s space now have nothing more than a sign where the store used to be.
But Chico’s hasn’t given up on brick-and-mortar entirely. The stores that remain open are usually in higher-traffic areas or are performing well with local shoppers. The thinking is that if a store is pulling its weight, there’s no sense in closing it—or letting it sit empty.
At the same time, Chico’s has made a pretty big shift toward online sales. The pandemic pushed a lot of older shoppers to try online shopping, and Chico’s worked to make its website easier to navigate, more mobile-friendly, and more appealing with online-exclusive deals and loyalty perks.
Changes in How Chico’s Sells: Online, In-Store, and Everything In Between
For brands like Chico’s, changing habits around shopping meant changing how they do business. Pre-pandemic, online sales were just a bonus for most apparel retailers aimed at more mature shoppers. Now, digital is the main event.
Chico’s online shop has grown to be a major focus. You can find the full range of women’s clothing, accessories, and signature pieces there—often more than you’ll see in stores. They also rolled out new programs for loyal shoppers, like personalized offers, easy returns, and the chance to pick up online orders in-store. This “omnichannel” approach (using both digital and physical stores to serve the same customer) is basically standard now for most retailers that want to survive.
Still, Chico’s hasn’t given up on the personal shopping experience. They’ve tested out virtual styling appointments and more interactive online tools, aiming to keep the experience personal even if it’s fully online. Some locations still offer in-person help for shoppers who want old-school advice about fit, style, or new arrivals.
Learning From The Past: What’s Next for Chico’s?
With Sycamore Partners now in charge, Chico’s has a new set of marching orders. The big goal: stay profitable, keep the best-performing stores, and grow digital sales even faster. Being owned by a private equity firm means there’s a sharp focus on running the business efficiently—think tighter inventory, fewer markdowns, and maybe trying out new products without a lot of fanfare.
Company leaders say they’re doubling down on what made Chico’s stand out in the first place. That means stylish pieces for women looking for quality and comfort, deals for loyal shoppers, and new collaborations to bring attention back to the brand.
Of course, they know it’s not 2010 anymore. You probably won’t see a bunch of glitzy store openings or splashy TV campaigns. Instead, the focus is on making the stores they do have work hard—and making it easy for loyal shoppers to buy both online and in person.
Like a lot of retail survivors, Chico’s is also paying close attention to what its core customers actually want. That might mean faster shipping, better returns, or just new ways to get in touch with customer service when there’s a problem. It’s all about making shopping feel simple and reliable, especially for women who’ve stuck with Chico’s over the years.
The Private-Equity Playbook (And What It Means for Chico’s)
Now, if you’ve followed other retail stories, you know that being bought by a private equity firm doesn’t guarantee a fairy-tale ending. Sometimes it goes well, and sometimes it’s just a pause before more changes down the line.
Sycamore Partners isn’t new to this kind of situation. They’ve managed other retailers, some that have bounced back and others that eventually wound down or sold off their brands. For Chico’s, the hope is that a focused strategy and new leadership will help it stand out in a tough market.
If you’re curious how these types of deals tend to play out, you can read more in this overview of private equity in retail.
For now, Chico’s is betting that its blend of well-known styles, a loyal (if smaller) customer base, and a smarter mix of stores and digital can keep the brand relevant.
What Does All This Look Like for Shoppers?
If you’re a longtime Chico’s shopper, you might have wondered why your local store closed. Or maybe you’ve noticed more online-only styles. Behind those changes is a company trying hard to adapt to new shopping habits.
The deals and discounts are still there, just more often through email or the app than in your mailbox. Some store locations will stick around, especially in big cities and shopping areas that still pull in a steady crowd. Online, you’ll find almost everything Chico’s offers, with options for home delivery or in-store pickup in select spots.
Returns are still pretty easy, but you’ll want to check policies online, since they can be a little different than before. And if you’ve signed up for the loyalty program, you’ll keep getting perks—just keep an eye on your inbox instead of expecting a postcard.
If you miss the experience of browsing racks in person, don’t count Chico’s out just yet—but you might have to drive a bit farther to visit an open store.
So, Is Chico’s Going Out of Business?
Here’s the simplest way to put it: Chico’s is not going out of business nationwide. But it is a smaller, much more digital company than it used to be.
A bunch of stores have closed, especially outside the U.S., and the company no longer answers to Wall Street analysts every quarter. Under new, private ownership, Chico’s is making bets on what the future of shopping looks like for its customers.
That means focusing on digital growth, winding down underperforming stores, and keeping longtime fans happy. It’s not the retail giant of the past, but if you’re a Chico’s shopper, you’ll still see the brand around—online, and in a handful of stores that are sticking it out for now.
Changes are still happening behind the scenes as Chico’s works through its new strategy. If you’re waiting to find out if your favorite store will stay open, it’s best to check with the company’s website or your local shop. Things can shift, but for now, Chico’s is sticking around, just doing things differently.
So no, Chico’s isn’t disappearing—but it’s definitely not business as usual these days. It’s a brand in transition, aiming to stay relevant in a world where shopping looks different than it did even five years ago.