Knoxville is soon to bid goodbye to a beloved shopping destination for books, music, and other physical media. McKay’s has decided to close the location this year, affecting 54 employees. The local workforce development board will oversee support services for employees.
McKay’s to Close Doors After 40 Years in Knoxville

McKay’s has filed a WARN notice with the Tennessee Department of Labor and Workforce Development. The filing states that the store is permanently closing on May 3, 2026. It will result in 54 employees losing their jobs.
The store, located at 230 Papermill Place Way in Knoxville, has been a favorite of readers and music lovers for 40 years. According to McKay’s website, the store is closing after the property on which it stands was sold.
McKay’s is only closing its Knoxville location during this period. Its Tennessee and North Carolina locations will continue operating as usual.
Effects of the Closure on Employees and Community

According to the WARN notice, 54 McKay’s employees will be affected by this closure, and 49 of them are union members. The East Local Workforce Development Area rapid response team has been notified. They will ensure the affected workers are supported during this transition period.
For the community, McKay’s leaves behind a heartfelt message reminiscing about the past 40 years. Although the store officially closes in May, it has stopped accepting new inventory. The store will accept returns until the final day; after that, no refunds will be issued.
Customers can use their McKay’s Trade credit and gift cards through its last day of business. They can also use the same in other locations in Tennessee and North Carolina. However, the store will no longer be selling physical McKay’s gift cards.
About McKay’s

McKay’s was founded in 1974 with the idea of a free-enterprise library. The first Tennessee location opened in Knoxville in 1985. It was followed by two other locations, McKay’s Chattanooga in 1990 and McKay’s Nashville in 2007.
As McKay’s Knoxville prepares to close its doors, the city will be saying farewell to more than just a retail store. The closure marks the end of an era for the community and its readers, collectors, and music lovers alike. Meanwhile, the workforce support teams will step in to assist affected employees, helping them navigate the transition.
