Retail Bankruptcy Statistics Fashion Industry 2025

The fashion retail industry is undergoing a turbulent period in 2025, with numerous brands filing for bankruptcy, closing stores, or facing severe financial struggles. Economic pressures, changing consumer preferences, and the relentless rise of e-commerce have made it difficult for traditional retailers to survive. Once-iconic brands are either restructuring or liquidating, signaling a major transformation in how fashion is bought and sold. As more companies collapse under debt and shifting market conditions, the future of brick-and-mortar fashion retail remains uncertain. These ten statistics highlight the most significant bankruptcies and closures shaping the industry this year—and what they mean for the future.

Retail Bankruptcy Statistics Fashion Industry 2025 (Editor's Choice)

The fashion retail industry has experienced significant financial challenges in recent years, leading to numerous bankruptcies and store closures. Below are ten notable statistics and events from 2025, highlighting the industry's ongoing struggles:​

1. Hudson's Bay Company Files for Creditor Protection: In March 2025, Hudson's Bay Co., a historic department store chain founded in 1670, filed for creditor protection in Canada. The company cited economic headwinds, shifting post-pandemic shopping patterns, and trade tensions with the U.S. as key factors behind the decision. ​

2. Forever 21's Second Bankruptcy Filing: In February 2025, Forever 21 filed for bankruptcy for the second time in six years, planning to close up to 200 stores. The company struggled to compete with fast-fashion competitors like Shein and Temu. 

3. Liberated Brands Liquidates 122 Stores: Liberated Brands, owner of Quiksilver, Billabong, and Volcom, filed for Chapter 11 bankruptcy and announced the closure of all 122 U.S. stores. Liquidation sales offered discounts of up to 50% to sell off remaining inventory. 

4. Joann's Second Bankruptcy and Store Closures: Joann, the fabric and craft retailer, filed for bankruptcy for the second time in a year in January 2025. The company announced the closure of 500 of its 800 stores in February, with plans to liquidate the remaining locations after failing to find a buyer. ​

5. Macy's Announces 150 Store Closures: In February 2024, Macy's announced plans to close up to 150 underperforming stores by the end of 2026, with 50 stores closing by the end of 2024. This represented 10% of its total sales. ​

6. Mosaic Brands Enters Administration: In October 2024, Mosaic Brands, owner of several Australian fashion retailers, entered voluntary administration, owing approximately $250 million. The company faced reduced spending, structural complexity, and massive debts to suppliers. ​

7. Select Fashion Closes 35 Stores: Select, a high street fashion brand, closed 35 stores by mid-March 2025, following a series of closures since January. The retailer had previously fallen into administration in 2019 and entered a Company Voluntary Arrangement in 2024 to restructure its debts. ​

8. Superdry Closes Aberdeen Store Amid Financial Struggles: Superdry, a major fashion chain with 87 stores across the UK, closed its branch in Aberdeen in early 2025. The company faced tough trading conditions, closing 12 stores in 2024, and reported a revenue drop of nearly a quarter to £219.8 million, with losses almost doubling to £25.3 million. ​

9. Quiz Clothing on the Brink of Administration: High street fashion retailer Quiz Clothing faced potential administration, putting its 60 stores and approximately 1,500 jobs at risk. The company planned to appoint administrators for a pre-pack administration, allowing founders to retain control while downsizing. ​

10. Predicted Surge in Retail Store Closures: Analysts predicted that retailers would close up to 15,000 stores in 2025, more than double the 7,325 closures in 2024, breaking the closure record set in 2020. ​

These statistics underscore the significant challenges faced by the fashion retail industry in 2025, including increased competition from online retailers, shifting consumer preferences, and economic pressures leading to widespread bankruptcies and store closures.

Retail Bankruptcy Statistics Fashion Industry 2025 and Future Implications

Retail Bankruptcy Statistics Fashion Industry 2025 #1. Hudson's Bay Company Files for Creditor Protection

Hudson’s Bay Company, one of the oldest department store chains, sought creditor protection in 2025, highlighting the ongoing struggles of legacy retailers in adapting to modern consumer habits. With increased competition from e-commerce giants and fast-fashion disruptors, traditional department stores are finding it difficult to remain profitable. The filing signals a need for major restructuring or potential liquidation, which could impact thousands of jobs across Canada. If the company fails to recover, its downfall could set a precedent for other long-standing retailers that have yet to fully embrace digital transformation. Future trends may see a continued decline of department stores unless they can reinvent themselves to offer unique in-store experiences or seamless omnichannel integration.

Retail Bankruptcy Statistics Fashion Industry 2025 #2. Forever 21’s Second Bankruptcy Filing

Forever 21’s second bankruptcy filing in 2025 underscores the volatility of the fast-fashion market, where brands must constantly adapt to changing consumer preferences. The rise of ultra-fast fashion companies like Shein and Temu has outpaced older fast-fashion retailers, forcing them into a cycle of financial instability. Closing 200 stores is a drastic measure, but it may not be enough to revive the brand unless it overhauls its supply chain and marketing strategy. The future of mid-tier fast fashion looks uncertain as younger consumers prioritize affordability, sustainability, and digital-first shopping experiences. If Forever 21 cannot differentiate itself in an increasingly crowded space, it may face permanent closure.

Retail Bankruptcy Statistics Fashion Industry 2025 #3. Liberated Brands Liquidates 122 Stores

The collapse of Liberated Brands, which owned Quiksilver, Billabong, and Volcom, signifies a major shift in consumer demand for surf and skatewear. Once iconic among youth subcultures, these brands struggled to stay relevant against the rise of streetwear labels and independent fashion startups. Their liquidation will create a gap in the market, potentially allowing niche direct-to-consumer (DTC) brands to capture former loyal customers. The closure of 122 stores also reflects the broader decline of physical retail, as younger consumers increasingly favor online shopping. Moving forward, surviving brands in this space will need to double down on digital engagement and influencer marketing to maintain relevance.

Retail Bankruptcy Statistics Fashion Industry 2025 #4. Joann’s Second Bankruptcy and Store Closures

Joann’s decision to close 500 stores following its second bankruptcy within a year highlights the challenges facing craft and fabric retailers. The pandemic-fueled DIY boom has faded, and with the rise of e-commerce competitors, traditional brick-and-mortar craft stores are struggling to retain customers. The failure to secure a buyer suggests that investors see little growth potential in the industry without a radical business model shift. If Joann ultimately liquidates, it could signal the end of mass-market craft retail as major competitors like Michaels may also face similar pressures. Future success in this space may depend on a strong online marketplace strategy, customizable offerings, and partnerships with content creators who drive demand for DIY projects.

Retail Bankruptcy Statistics Fashion Industry 2025 #5. Macy’s Announces 150 Store Closures

Macy’s plan to close 150 stores by 2026 reflects the ongoing shift in consumer shopping habits away from traditional department stores. The closures amount to roughly 10% of the company’s sales, indicating that underperforming locations are draining profitability. With luxury and discount retailers performing well, Macy’s is caught in the struggling middle-market category, which lacks clear differentiation. To survive, the company will need to focus on experiential retail, exclusive product lines, and stronger online sales strategies. If department stores like Macy’s do not innovate quickly, they may become obsolete within the next decade.

Retail Bankruptcy Statistics Fashion Industry 2025 #6. Mosaic Brands Enters Administration

Mosaic Brands' financial collapse in 2024, with debts exceeding $250 million, underscores the difficulties faced by multi-brand retailers in maintaining profitability. The company's complex structure made it difficult to streamline operations, and declining consumer spending further exacerbated its troubles. Its administration filing raises concerns about the viability of similar businesses that rely on managing multiple fashion labels under one umbrella. The growing dominance of online fast-fashion retailers continues to threaten traditional retail conglomerates. Moving forward, brands will need to focus on agility, digital marketing, and sustainable production to avoid a similar fate.

Retail Bankruptcy Statistics Fashion Industry 2025 #7. Select Fashion Closes 35 Stores

Select Fashion’s closure of 35 stores in early 2025 continues the trend of declining high-street fashion brands in the UK. The retailer has struggled for years, previously entering administration in 2019 and undergoing restructuring in 2024. Its reliance on physical stores without a strong online presence has left it vulnerable to changing shopping habits. If it cannot adapt quickly, the brand may face complete closure, further reducing affordable fashion options on the high street. This case highlights the urgency for struggling retailers to invest in digital-first strategies to remain competitive.

Retail Bankruptcy Statistics Fashion Industry 2025 #8. Superdry Closes Aberdeen Store Amid Financial Struggles

Superdry’s struggles reflect a broader decline in mid-market fashion brands that lack strong brand identity or digital innovation. The company’s revenue fell nearly 25% in 2025, and store closures suggest it is struggling to maintain profitability in an increasingly competitive market. Its failure to modernize its offerings and capitalize on digital trends has left it lagging behind competitors. If Superdry cannot turn around its losses through online growth or rebranding efforts, it may be forced into administration. The fashion industry’s future will likely favor agile brands that quickly adapt to shifting trends and consumer preferences.

Retail Bankruptcy Statistics Fashion Industry 2025 #9. Quiz Clothing on the Brink of Administration

Quiz Clothing’s potential administration puts 1,500 jobs and 60 stores at risk, emphasizing the fragility of mid-tier fashion brands. While a pre-pack administration could allow its founders to restructure and regain control, it’s unclear whether the business can be salvaged in a highly saturated market. Quiz has struggled to compete with larger, more established fast-fashion retailers, and its reliance on physical retail has become a liability. If it fails to adapt, the brand could disappear entirely, signaling a further reduction in high-street fashion diversity. This situation reinforces the importance of innovation and agility in an industry dominated by rapid trend cycles.

Retail Bankruptcy Statistics Fashion Industry 2025 #10. Predicted Surge in Retail Store Closures

Analysts predict that 15,000 retail stores will shut down in 2025, doubling the closures seen in 2024 and surpassing the record set in 2020. This signals an acceleration of the retail apocalypse, with even well-established brands struggling to maintain physical locations. Economic pressures, high rent costs, and the continued rise of e-commerce are forcing traditional retailers to reconsider their business models. Companies that fail to embrace omnichannel strategies risk being left behind as consumers prioritize convenience, personalization, and affordability. Looking ahead, brick-and-mortar retail must reinvent itself with immersive experiences, hybrid shopping models, and unique value propositions to remain relevant.

The Future of Fashion Retail: Adapt or Disappear

The wave of bankruptcies and store closures in 2025 paints a clear picture—fashion retailers that fail to evolve will struggle to survive. Legacy brands are collapsing under the weight of outdated business models, while fast-moving digital competitors continue to dominate. The increasing reliance on e-commerce, direct-to-consumer strategies, and sustainability-focused initiatives suggests that the industry’s future will favor brands that embrace innovation. Traditional retailers must rethink their approach by prioritizing digital transformation, unique in-store experiences, and personalized shopping to stay relevant. As the industry continues to shift, companies that fail to adapt will risk becoming part of the next bankruptcy statistic.

Sources: 

1. https://www.thefashionlaw.com/retail-woes-a-bankruptcy-timeline/
2. https://people.com/forever-21-is-closing-more-stores-amid-bankruptcy-reports-11693002
3. https://www.the-sun.com/money/13530086/liquidation-sales-quiksilver-billabong-ceo-stores-close/
4. https://en.wikipedia.org/wiki/Jo-Ann_Stores
5. https://en.wikipedia.org/wiki/Macy%27s
6. https://en.wikipedia.org/wiki/Mosaic_Brands
7. https://www.thescottishsun.co.uk/money/14454324/fashion-giant-35-stores-closures/
8. https://www.thescottishsun.co.uk/money/14347039/popular-fashion-chain-shutting-its-doors/
9. https://www.thesun.co.uk/money/33054963/high-street-fashion-chain-quiz-administration-stores-in-doubt/
10. https://www.forbes.com/sites/pamdanziger/2025/01/30/retail-apocalypse-well-over-twice-as-many-stores-will-close--as-open-in-2025/