San Marcos, Texas, December 16, 2025
San Marcos, Texas, has witnessed notable business closures in 2025, affecting both local and national retailers. Key closures include Forever 21 and The Groove café, highlighting the challenges in the current economic landscape. Despite these setbacks, new developments are underway to stimulate local economic growth, including a boutique hotel project and an industrial business park. The community is responding with a mix of concern and optimism, focusing on future revitalization efforts.
San Marcos, Texas, Sees Notable Business Closures in 2025
San Marcos, Texas, has experienced several significant business closures in 2025, impacting both local retailers and national chains operating in the area. These changes highlight the challenges and opportunities that come with the evolving business landscape while underscoring the importance of entrepreneurial resilience.
Major Retail Closures
Forever 21, a global fashion retailer, closed its location at the Tanger Outlets in San Marcos in March 2025. This closure was part of a broader strategy following the company’s Chapter 11 bankruptcy filing, which led to the shutdown of several U.S. stores. The San Marcos store had been offering men’s and women’s apparel and accessories.
The Groove, a brunch café that opened in 2022, ceased operations on March 15, 2025. Located at 2626 Hunter Road, Suite 101, the café was known for its breakfast items, tacos, sandwiches, soups, wraps, and bowls.
Boardriders, a retailer specializing in branded apparel, footwear, and accessories for boardriders and outdoor action sports, announced the closure of its San Marcos store in the Tanger Outlets at the end of April 2025.
Local Business Closures
Earth Burger, a local vegetarian fast-food restaurant located on East Hopkins Street, closed in January 2024 after six years of operation. The decision was influenced by the need to adapt to the evolving market dynamics in San Marcos and to open up the market for future franchises.
Background Context
San Marcos has seen a mix of business closures and openings in recent years. While some national retailers have exited the market, local businesses continue to adapt and evolve. For instance, in November 2025, Texas State University approved a $70 million development agreement with Midway Hospitality to construct a full-service boutique hotel on the south side of its campus. This project aims to enhance tourism, provide additional lodging for university events, and stimulate local economic growth.
Additionally, in September 2025, a new industrial business park broke ground in San Marcos. The $22 million first phase of this development is underway, with plans for three buildings totaling 665,760 square feet. This project is expected to create jobs and contribute to the local economy.
These developments indicate a dynamic business environment in San Marcos, characterized by both challenges and opportunities for growth and revitalization.
Frequently Asked Questions (FAQ)
What major businesses closed in San Marcos in 2025?
In 2025, several significant business closures occurred in San Marcos, including:
- Forever 21: Closed its location at the Tanger Outlets in March 2025 as part of a broader strategy following the company’s Chapter 11 bankruptcy filing.
- The Groove: A brunch café that opened in 2022, ceased operations on March 15, 2025.
- Boardriders: A retailer specializing in branded apparel, footwear, and accessories for boardriders and outdoor action sports, announced the closure of its San Marcos store in the Tanger Outlets at the end of April 2025.
- Earth Burger: A local vegetarian fast-food restaurant located on East Hopkins Street, closed in January 2024 after six years of operation.
What developments are taking place in San Marcos to boost the local economy?
San Marcos is witnessing several developments aimed at boosting the local economy, including:
- Texas State University’s Boutique Hotel Project: In November 2025, Texas State University approved a $70 million development agreement with Midway Hospitality to construct a full-service boutique hotel on the south side of its campus. This project aims to enhance tourism, provide additional lodging for university events, and stimulate local economic growth.
- San Marcos Business Park: In September 2025, a new industrial business park broke ground in San Marcos. The $22 million first phase of this development is underway, with plans for three buildings totaling 665,760 square feet. This project is expected to create jobs and contribute to the local economy.
How is the local community responding to these business closures?
The local community is responding to these closures with a mix of concern and optimism. While some residents express worries about the impact on the local economy and job market, others are hopeful that new developments and initiatives will revitalize the area. Community leaders are focusing on supporting existing businesses and attracting new ones to ensure the city’s economic resilience.
Are there any new businesses opening in San Marcos?
Yes, despite the closures, San Marcos continues to see new business openings. For example, in September 2025, a new industrial business park broke ground, and in November 2025, Texas State University approved a development agreement for a new boutique hotel. These developments indicate ongoing investment and growth in the area.
What factors are contributing to the business closures in San Marcos?
Several factors are contributing to the business closures in San Marcos, including financial challenges, changing consumer behaviors, and broader economic conditions. For instance, the closure of Forever 21 was part of a broader strategy following the company’s Chapter 11 bankruptcy filing, leading to the shutdown of several U.S. stores.
Key Features of San Marcos Business Closures in 2025
| Business Name | Location | Closure Date | Reason for Closure |
|---|---|---|---|
| Forever 21 | Tanger Outlets, San Marcos | March 2025 | Part of a broader strategy following the company’s Chapter 11 bankruptcy filing, leading to the shutdown of several U.S. stores. |
| The Groove | 2626 Hunter Road, Suite 101, San Marcos | March 15, 2025 | Closed after operating for approximately three years. |
| Boardriders | Tanger Outlets, San Marcos | End of April 2025 | Announced closure of its San Marcos store. |
| Earth Burger | East Hopkins Street, San Marcos | January 2024 | Closed after six years of operation due to the need to adapt to evolving market dynamics and to open up the market for future franchises. |
Deeper Dive: News & Info About This Topic
HERE Resources
San Antonio Developments: H-E-B Merchandise and Restaurant Closures
Urban Bird Hot Chicken Opens First San Antonio Location
San Antonio’s Beverage Scene Welcomes New Venues
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
