If your local DSW recently closed or you spotted a “store closing” sign in the window, it’s easy to jump to conclusions. But the short answer is no — DSW is not going out of business. The longer answer takes a bit more explaining, because the situation is more nuanced than a simple yes or no.
This article covers what’s actually happening with DSW: why specific stores are closing, how many locations are still open, what changed with product selection, and what you should do if your nearest store shuts down.
DSW Is Not Going Out of Business — But It Is Shrinking Its Store Count
As of 2026, DSW still operates more than 500 stores across the U.S. and Canada, along with a fully functioning e-commerce site. Its parent company, Designer Brands Inc. (DBI), is publicly traded and has not filed for bankruptcy or announced any kind of liquidation.
What has happened is that DSW has closed dozens of individual locations over the past few years. That’s where the confusion comes from. Closing some stores is not the same as shutting down the entire company.
Social media doesn’t help. When a local DSW puts up a “store closing” sign, community Facebook groups and Reddit threads often turn it into something bigger. One post even claimed that “the parent company filed Chapter 11” — but that’s not supported by any official filings or credible news sources. DBI has not filed for bankruptcy.
Why Specific DSW Stores Are Closing
There are a few clear reasons why individual DSW locations have been shutting down. None of them point to the company collapsing.
Lease Expirations
The most common reason is simple: the lease ends, and either DSW can’t agree on a renewal or the landlord moves on. This has nothing to do with bankruptcy — it’s just how retail real estate works.
In November 2025, a DSW in Oshtemo Township, Kalamazoo County, Michigan closed on November 15. A DSW spokesperson confirmed the closure was entirely due to a lease expiration and the company’s inability to find a new site in that area. Customers were directed to nearby stores in Wyoming and Grand Rapids, Michigan.
The same thing happened at Atlanta’s Atlantic Station location. DSW closed there on January 24 when the property owner, Hines, chose not to renew the lease. That was a landlord decision, not a sign of DSW falling apart. Other Atlanta-area stores stayed open.
In Portland, one DSW location closed in January while a second store at Cascade Station remained open just miles away. Again — one store closes, another nearby stays open. That’s the pattern.
Underperforming Locations
Beyond lease issues, DSW has also closed stores that simply weren’t generating enough sales to justify staying open. This is a normal business decision for any large retail chain. Cutting a weak location doesn’t mean the rest of the business is struggling.
How Many DSW Stores Have Closed — and How Many Are Still Open
The numbers give you a clearer picture. Designer Brands announced a plan to close 65 stores total: 24 in 2021, followed by 41 more spread over the next four years. This came after the company reported a net loss of roughly $489 million, largely connected to pandemic-related disruptions and temporary store closures.
That’s a real financial hit. But context matters. Even after those closures, DSW still operates well over 500 locations across 44 states. The company described the closures as “right-sizing” — cutting underperforming spots while keeping and reinvesting in better locations.
In early 2026, Designer Brands also carried out a round of corporate-level layoffs. The exact number of employees affected wasn’t disclosed, but the move was framed as part of ongoing cost management. Layoffs at the corporate level can signal financial pressure, but they are not the same as closing the chain.
The bottom line: DSW has shrunk its footprint, but it’s still a large, operating retail chain with hundreds of stores and a working website.
Nike Left DSW — and What That Means for Shoppers
One of the most visible changes at DSW in recent years had nothing to do with the company’s finances. In 2021, Nike ended its wholesale relationship with DSW. Nike’s last shipment arrived in September 2021. Once that inventory sold through, Nike products disappeared from DSW shelves and the website entirely.
This wasn’t a DSW problem — it was Nike’s call. Nike made a broader decision to pull back from many third-party retailers and focus on selling through its own stores, website, and apps. DSW was one of many retailers affected.
Shoppers who walked in looking for Nike sneakers and found empty space may have assumed DSW was losing ground. That’s understandable. But DSW responded by expanding other athletic and fashion brands and growing its own private-label lines. Private labels also tend to carry higher profit margins, which is one reason retailers push them.
So if you’re a Nike fan, DSW is no longer the place for that. But the store still carries a wide range of other brands and its own lines.
What DSW’s Current Strategy Actually Looks Like
DSW isn’t just cutting stores and hoping for the best. The company has a clear direction, even if it involves some short-term pain.
- Smaller, more efficient stores: DSW is moving away from large older locations and toward smaller formats in areas with stronger foot traffic and sales.
- More online focus: Like most retailers, DSW is putting more weight on e-commerce, click-and-collect options, and digital shopping.
- Own brands: With Nike gone, DSW is leaning harder into private-label footwear, which gives them better margins and more control over inventory.
Think of it like a restaurant chain closing underperforming locations in slow strip malls while investing more in busy neighborhoods and delivery. Fewer locations doesn’t always mean the business is failing — sometimes it means the business is getting smarter about where it operates.
What Should You Do If Your Nearest DSW Closes?
If your local store shuts down, here are your practical options:
- Check for nearby stores. DSW usually directs customers to the next closest location, as they did with the Kalamazoo and Portland closures. Use the store locator on DSW.com.
- Shop online. DSW.com carries the full product range with shipping and returns available nationwide.
- Use your rewards and gift cards. As long as DSW is operating — which it is — your VIP rewards points and gift cards can still be used in stores or online. Check DSW’s site directly for any current policy details.
If you’re outside the U.S. and remember the Town Shoes brand closing in Canada, that’s a separate situation. DSW’s parent company shut down the Town Shoes brand (38 Canadian stores) back in early 2019. That was a brand-level decision, not DSW itself exiting Canada or North America entirely.
Is There Anything to Actually Watch Out For?
Right now, DSW is not going out of business. But retail is a moving target, and it’s fair to keep an eye on a few things:
- Designer Brands’ quarterly earnings reports will show whether sales are stabilizing or continuing to slide.
- Any news of additional large-scale store closures beyond the 65 already announced would be worth paying attention to.
- More corporate layoffs could indicate further restructuring ahead.
For ongoing business news and retail updates, sites like SlideJournal cover industry trends worth bookmarking if you want to stay informed.
The situation can always change, and it’s worth checking current news rather than relying on any single article — including this one — for the final word on DSW’s long-term future.
The Bottom Line
DSW is not going out of business. It has closed dozens of stores in recent years, lost its Nike supply relationship, laid off corporate staff, and dealt with real financial losses. All of that is true. But the company still runs more than 500 locations, has an active website, and is following a strategy built around smaller stores, private brands, and online growth.
When you see a specific DSW close, it almost always comes down to a lease expiration or low sales at that one location — not a company-wide collapse. Check for a nearby store or shop online, and don’t let a Facebook rumor convince you the whole chain is done.
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