Budget Fashion Brand Announces Closure of 120 Stores Amid Economic Strain

A major budget fashion brand will shut down 120 stores nationwide due to inflation and rising costs, according to CEO John Cato.

Editorial Desk

September 28, 2026 One Min Read

POLICY WIRE — City, Country — A well-known budget fashion brand is set to close 120 stores across multiple states as economic pressures mount from high inflation and fuel costs.

The Cato Corporation, which owns Cato Fashions, has announced that over 10% of its locations will be closed by the end of the fiscal year. The parent company operates more than 1,000 clothing stores in 31 states.

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CEO John Cato stated that the decision comes after a review of store performance, with many underperforming locations expected to see little improvement. The closures, initially planned for 50 stores, have been expanded to 120, with an estimated cost between $1 million and $1.3 million.

Reporting by Policy-Wire (PW)

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