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- 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
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
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
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
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
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
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
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
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
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
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
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
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
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
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.
Read the full article here
