Significant Retail Bankruptcies in 2025

The retail industry has faced a tumultuous period this year, with an escalating rate of bankruptcies among well-known brands. From liquidation to acquisition, the outcomes have been varied. Here's a look at some of the major retail bankruptcies that have marked 2025.

At Home: July to October

The housewares retailer At Home, headquartered in Texas, sought Chapter 11 bankruptcy protection in July. By October, they had secured new backing from a consortium of lenders, allowing them to stabilize and continue operations.

JoAnn Fabric: January to May

In January, the crafting giant JoAnn Fabric filed for its second Chapter 11 within a year and gradually ended its store operations over the following months.

Party City: December to February

Despite a previous bankruptcy resolution in late 2023, Party City was back in Chapter 11 by December 2024. Shrinking sales due to inflation and supply issues had led them to shutter company-owned locations in early 2025.

Forever 21: March to May

Faced with competition from online giants like Shein, Forever 21 filed for bankruptcy protection in March and subsequently closed all U.S. stores a month later.

Rite Aid: May to October

Eight months after first declaring bankruptcy, Rite Aid repeated the process in May. Unprofitable locations were sold to rivals, such as CVS and Walgreens, leading to a final closure in October.

Bargain Hunt: February

February saw Bargain Hunt, known for deeply discounted products, quickly file and conclude its Chapter 11 process, closing all 92 of its U.S. stores.

The Container Store: December to January

Specialized in organizational solutions, The Container Store filed for Chapter 11 in late 2024 and emerged in January, with less debt and transferred to private ownership.

Hooters: March to November

The iconic Hooters chain entered Chapter 11 in March and emerged by November under an agreement to reinvigorate the brand with its original founders.

Candy Warehouse: October

Amidst intensified buying for Halloween, Candy Warehouse filed for protection under Chapter 11 in October, and the case remains unresolved.

Del Monte Foods: Ongoing Since July

Del Monte initiated a bankruptcy process in July, negotiating for extended financing as it scouts for a potential purchaser to aid its restructuring efforts.

Bar Louie: March to October

The bar and restaurant chain faced bankruptcy again in March, leading to its acquisition by Sun Holdings in October, fortifying its brand with other food service assets.

Hudson's Bay: March to June

This historical Canadian retailer failed to find new financial support after filing in March and ultimately ceased operations in June, selling its brand to Canadian Tire.

Claire's: August

Claire's, best known for ear-piercing services, entered Chapter 11 for a second time in August. It was swiftly acquired by a private equity firm aiming to maintain its retail presence.

Liberated Brands: February to May

The apparel group known for Billabong and Roxy brands filed in February when its licensing was revoked. With no feasible repayment plan for lenders, the case was closed in May, leaving many claims unsettled.