Retail Bankruptcy Surge: Major Brands File for Chapter 11 Bankruptcy in 2025
Wave of Bankruptcy Cases in 2025
In 2025, bankruptcy claims skyrocketed, with many retailers opting for Chapter 11 bankruptcy. Throughout the year, more than 8,100 stores permanently closed their doors across the U.S., marking a staggering 12% increase from the previous year according to retail analytics firm Coresight Research. Major national and regional brands faced unprecedented challenges amidst uncertain economic growth.
Key Retailers Facing Bankruptcy
- Bargain Hunt - This Nashville-based discount retailer announced in February its plans to shutter all 92 stores across 10 states.
- Forever 21 - The fast-fashion giant ceased U.S. operations due to fierce competition from international brands like Shein and Temu.
Financial Implications
As retail giants file for Chapter 11 bankruptcy, the impact resonates across the economy, influencing everything from employment rates to consumer spending habits.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.