14 notable retail bankruptcy cases of 2025
The retail landscape in 2025 has been marked by significant upheaval, with a notable increase in business bankruptcies across the sector. According to an analysis by the Administrative Office of the US Courts, numerous high-profile brands have succumbed to financial distress, some for the second time within a few years. This spate of bankruptcies reflects broader challenges facing retailers, including supply chain disruptions, inflationary pressures, and a slowdown in consumer spending. As companies navigate these turbulent waters, some have successfully reorganized and emerged from bankruptcy, while others have been forced to close their doors permanently.
Among the most notable cases of 2025, Texas-based housewares chain At Home filed for Chapter 11 protection in June but managed to exit bankruptcy by October, restructuring under new ownership with its lenders. In contrast, JoAnn Fabric, an arts and crafts retailer, filed for bankruptcy in January and subsequently closed all its stores by May, marking its second Chapter 11 filing in less than a year. Similarly, Party City, which had just exited bankruptcy in late 2023, found itself filing again in December 2024, ultimately shutting down corporate-owned locations in early 2025. Other notable mentions include Forever 21, which succumbed to competition from fast-fashion e-commerce brands, and Rite Aid, which filed for bankruptcy twice in quick succession, selling off most of its locations to larger pharmacy chains.
The year has also seen a mix of outcomes for various brands. While some, like The Container Store and Hooters, successfully restructured and emerged from bankruptcy with lighter debt burdens, others faced more dire fates. For instance, the iconic Hudson’s Bay Company, after 355 years of operation, closed its stores and sold its brand name to Canadian Tire. Meanwhile, Claire’s, known for its ear-piercing services, filed for Chapter 11 and was quickly acquired by a private equity firm dedicated to maintaining its retail presence. As the retail sector continues to grapple with these challenges, the outcomes of these bankruptcy cases will likely shape the landscape for years to come, highlighting the ongoing evolution of consumer habits and market dynamics.
2025 has seen some high-profile bankruptcy cases and a range of outcomes.
Creative Touch Imaging Ltd./NurPhoto via Getty Images
The retail sector has had a tough run this year, and business bankruptcies have been on the rise.
Some companies have dissolved while others have negotiated a solution — or a buyer.
Here are some of the more notable retail bankruptcy cases that took place in 2025.
This year has been a rough one for retailers.
Business bankruptcies
across the country have been on the rise in recent years, according to an
analysis from
the Administrative Office of the US Courts, and 2025 has seen several prominent retail brands involved.
Some retail brands started the year already engaged in the bankruptcy process, while others filed for protection as the months went by.
Among them, several have found themselves in bankruptcy for the second time in just a few years, and a few have managed to find buyers interested in keeping their brands alive through an acquisition.
Here is a roundup of 14 of the more notable retail bankruptcy cases that unfolded in 2025.
At Home — filed in June, exited in October
At Home.
LM Otero/AP
Texas-based
housewares chain At Home
filed for Chapter 11 protection in June and emerged in October with a new ownership agreement among a group of its lenders.
JoAnn Fabric — filed in January, closed in May
Joann
Arts and crafts retailer
JoAnn filed in January
for its second Chapter 11 status in less than a year, and wound down its stores over the next several months.
Party City — filed in December, closed in February
Party City Holdco Inc. filed for Chapter 11 bankruptcy protection in a bid to restructure its heavy debt load after supply chain problems, rising inflation and a consumer slowdown have hurt sales.
Joe Raedle/Getty Images
Just over a year after exiting bankruptcy in October of 2023,
Party City again filed
for Chapter 11 protection in December 2024. The company spent the early months of 2025 closing corporate-owned stores.
Forever 21 (US) — filed in March, closed in May
Kevin Carter/Getty Images
Citing pressure from fast-fashion
e-commerce brands like Shein and Temu, shopping mall favorite Forever 21 filed for Chapter 11 protection in March and shuttered its US locations the following month.
Rite Aid — filed in May, closed in October
Pedestrians walk past a Rite Aid store in Brooklyn, New York. Many of the stores slated to close are in the Northeastern US.
Spencer Platt/Getty Images
Pharmacy chain
Rite Aid filed
for its second bankruptcy just eight months after exiting its first. The company sold most locations to rivals like CVS and Walgreens and closed its remaining stores in October.
Bargain Hunt — filed in February, closed in February
Bargain Hunt.
Hilco Consumer – Retail
Ultra-discounter Bargain Hunt filed for Chapter 11 in February and moved quickly to close all 92 US locations.
The Container Store — filed in December, emerged in January
Scott Olson/Getty Images
Organizing specialists
The Container Store filed
for Chapter 11 protection in late December 2024 and emerged weeks later with a lighter debt load and private ownership.
Hooters — filed in March, emerged in November
Hooters filed for Chapter 11 bankruptcy on Monday.
Joe Raedle/Getty Images
Chicken-wing and skimpy-uniform restaurant chain Hooters filed for Chapter 11 protection in March and emerged several months later under a deal with the company’s original founders to
“re-Hooterize” the brand
.
Candy Warehouse — filed in October, case ongoing
Happy Halloween.
mtreasure/Getty Images
Online bulk candy retailer Candy Warehouse filed for Chapter 11 protection in October on the eve of one of the biggest sweets-purchasing holidays of the year.
Del Monte — filed in July, case ongoing
Jeffrey Greenberg/Universal Images Group via Getty Images
Grocery store staple
Del Monte Foods filed
for Chapter 11 protection in July as it seeks to restructure its business. The company said it secured $912.5 million in financing from existing lenders, which allows it to remain in business while it looks for a buyer.
Bar Louie — filed in March, purchased in October
George Rose/Getty Images
Martini and burger
chain Bar Louie filed for Chapter 11 protection in March, five years after navigating the process and closing dozens of locations. In October, Sun Holdings purchased the company out of bankruptcy, adding to a portfolio that includes several quick-serve and full-service chain locations.
Hudson’s Bay — filed in March, IP sold in June
People walk into the Hudson’s Bay Company (HBC) flagship department store in Toronto
Reuters
Canada’s 355-year-old retail icon
Hudson’s Bay Company
entered an arrangement with creditors in March. Unable to secure new financing, HBC closed its doors in June and sold its brand name and IP to Canadian Tire.
Claire’s — filed in August, sold in August
Jordan Hart/Business Insider
Ear-piercing boutique Claire’s
filed for Chapter 11 protection in August for the second time in seven years and was quickly sold to a private equity firm that pledged to preserve much of the chain’s retail footprint.
Liberated Brands — filed in February, dismissed in May
Kevin Carter/Getty Images
Apparel group Liberated Brands, which operated
surf lifestyle brands like Billabong
, Roxy, RVCA, and Quiksilver, filed for Chapter 11 protection in February. The move came after Authentic Brands Group terminated the company’s license to use its labels and transitioned them to another partner.
The case was dismissed in May when Liberated Brands was unable to pay its secured lenders in full, leaving unsecured creditors like suppliers and service providers unpaid.
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