Retail Bankruptcies Surge in 2025: 14 Brands Facing Collapse
UPDATE: The retail sector faces an unprecedented crisis in 2025, with a staggering number of prominent brands filing for bankruptcy. As of October, 14 major retail chains have succumbed to financial pressures, impacting thousands of employees and reshaping the shopping landscape.
New reports confirm that business bankruptcies are on the rise, driven by supply chain challenges, soaring inflation, and declining consumer spending. Retail giants, once household names, are now struggling to stay afloat.
Among the notable cases, At Home filed for Chapter 11 protection in June but successfully emerged in October under new ownership. Meanwhile, JoAnn Fabric filed for bankruptcy in January, closing its doors by May after facing mounting operational challenges.
Party City, which had just exited bankruptcy in October 2023, filed again in December 2024, seeking to restructure its debt. The company closed many corporate-owned stores in early 2025 as it battled ongoing financial woes.
In March, Forever 21 succumbed to fierce competition from e-commerce brands like Shein, leading to a swift closure of its U.S. locations by May. Similarly, pharmacy chain Rite Aid filed for its second bankruptcy in May 2025 and began shutting down stores in October after selling most of its locations to competitors.
The urgency continues with Bargain Hunt, which filed in February and promptly closed all 92 stores. In stark contrast, The Container Store filed for bankruptcy in late December 2024 but quickly restructured and emerged with a leaner debt profile just weeks later.
Other brands facing dire circumstances include Hooters, which filed in March and managed to emerge by November through a deal with its original founders. Additionally, Candy Warehouse filed for Chapter 11 protection in October, right before Halloween—a crucial sales period for the candy industry.
Del Monte Foods filed in July, securing $912.5 million in financing to stay operational while seeking a buyer. In a notable case, Hudson’s Bay Company, a 355-year-old retail icon, entered bankruptcy in March and ultimately closed its flagship stores in June, selling its brand name to Canadian Tire.
As retailers navigate this turbulent landscape, the human impact is palpable. Employees face job losses, and communities grapple with the disappearance of beloved shopping destinations. With the holiday season approaching, the stakes have never been higher.
Looking ahead, industry experts warn more bankruptcies may follow as economic pressures continue. Consumers are urged to stay informed as these developments unfold.
NEXT: Watch for updates on how these bankruptcies will impact retail dynamics and what new strategies companies may employ to survive in an increasingly challenging market.
