Castner Knott's historic flagship location on Nashville's Church Street closed in 1996, while the remaining stores were among those sold to Little Rock, Arkansas-based Dillard's, when it acquired Mercantile in 1998. The five high-volume mall stores (Bellevue Center, Cool Springs, Hickory Hollow, Green Hills and Rivergate) in Nashville, where Dillard's already had locations, were sold to Saks Incorporated and rebranded as Proffitt's, which resold them to May Company, who, in turn, rebranded these locations as Hecht's in 2001. In 2006, those stores were converted to the Macy's name as a result of the May Company-Federated Department Stores merger. Macy's would eventually close the Bellevue Center and Hickory Hollow Mall locations.
Some Nashville residents continue to mourn the loss of Castner-Knott. About twelve people meet monthly to discuss the lack of value offered by modern department store chains, review old security tapes from the Hickory Hollow location, and reminisce about Castner-Knott's unique atmosphere. Nashville resident and support-group member Lucy Ferry said, "You would not believe the quality - you can almost smell the perfume counter. I don't see Macy's moving me that way."