The retail and fashion landscape has faced significant turbulence throughout 2025 and into early 2026. High interest rates, shifting consumer behavior, and the fallout from aggressive debt fueled acquisitions have pushed several iconic brands and massive retail groups into Chapter 11 or similar restructuring processes. This report ranks the top 10 most significant fashion and retail bankruptcies that will unfold through 2026, focusing on their financial impact, brand prominence, and current status.
Executive Summary
The following table summarizes the top 10 bankruptcies ranked by the severity of their financial liabilities and brand scale.
| Rank | Brand / Company | Filing Date | Estimated Liabilities | Current Status |
| 1 | Saks Global | January 13, 2026 | $1B – $10B | Secured $1.75B in DIP financing; restructuring |
| 2 | Forever 21 | March 16, 2025 | $1.58B | Liquidation sales in progress; closing all stores |
| 3 | Hudson’s Bay Company | March 7, 2025 | $500M+ | CCAA filing; liquidating remaining 80 stores |
| 4 | Claire’s | August 6, 2025 | $496M | Selling North American business to Ames Watson |
| 5 | Pat McGrath Labs | January 22, 2026 | $100M – $200M | Chapter 11; halted asset sale for restructuring |
| 6 | SSENSE | August 15, 2025 | $300M+ | CCAA filing; sale transaction expected Feb 2026 |
| 7 | Joann Fabrics | May 15, 2025 | $500M+ | Second filing; closing numerous locations |
| 8 | Mosaic Brands | July 1, 2025 | Not Specified | In liquidation; second liquidator appointed |
| 9 | Lugano Diamonds | November 16, 2025 | Not Specified | Chapter 11: pursuing value maximizing sale |
| 10 | SKKN by Kim | September 12, 2025 | Not Specified | Shuttered operations; brand winding down |
1. Saks Global
Saks Global filed for bankruptcy on January 13, 2026, only months after being created as the parent entity following the $2.7 billion acquisition of Neiman Marcus by Saks Fifth Avenue’s parent, HBC. The Chapter 11 filing came on the heels of missed vendor payments and severe liquidity constraints, raising questions about the viability of a highly leveraged luxury retail roll up. In 2026, all eyes are on the impact of the company’s secured $1.75 billion in debtor in possession (DIP) financing and whether it can successfully integrate the Saks, Neiman Marcus, and Bergdorf Goodman brands under a leaner capital structure, or if deeper store closures and potential brand spin offs will be needed to keep the group alive.
2. Forever 21
Forever 21 filed for bankruptcy on March 16, 2025, marking its second trip to court protection in just six years and carrying about $1.58 billion in debt into the process. The fast fashion chain struggled to compete with ultra fast players like Shein and Temu, while also grappling with rising operational costs and declining mall traffic. Unlike its earlier restructuring, the 2025 filing led to a full liquidation of its remaining 354 stores, signaling the end of Forever 21 as a major brick and mortar presence. Through 2026, the focus is on the sale of its intellectual property, which is expected to be fully auctioned off by mid 2026, potentially paving the way for a digital only revival under new ownership.
3. Hudson’s Bay Company (HBC)
Hudson’s Bay Company (HBC), one of Canada’s most storied retailers, sought creditor protection under the CCAA on March 7, 2025, after reporting a loss of $329.7 million in the prior fiscal year. Trade tensions, shifting consumer behavior, and a global move away from the traditional department store model all contributed to the filing. In 2026, HBC is in the midst of liquidating its remaining physical footprint, and the spotlight has turned to its substantial asset base: a portfolio of valuable real estate and a historic archive that includes roughly 4,000 artworks, all of which are being evaluated for sale as the company works to satisfy creditors and close a defining chapter in Canadian retail history.
4. Claire’s
Claire’s filed for Chapter 11 on August 6, 2025, burdened with nearly $500 million in debt and challenged by its slow transition to e‑commerce and tariff related pressures on its supply chain. The mall based jewelry and accessories staple, long dependent on teen and tween foot traffic, struggled to adapt as consumer spending and shopping habits shifted online. Looking into 2026, Claire’s has reached an agreement to sell the majority of its North American operations to private equity firm Ames Watson, with a restructuring plan centered on a “store within a store” model inside major retailers such as Walmart, aiming to keep the brand visible without the burden of a large standalone store base.
5. Pat McGrath Labs
Pat McGrath Labs, founded by legendary makeup artist Pat McGrath, filed for Chapter 11 on January 22, 2026, just days before a public auction of its assets was scheduled. Once touted as a “billion dollar” beauty empire and a benchmark for runway to retail color innovation, the brand entered court supervision with the stated goal of reorganizing its legacy capital structure. Throughout 2026, Pat McGrath Labs is undergoing a court supervised restructuring expected to conclude by late in the year, with fans and investors closely watching whether the label can retain its luxury positioning and cult prestige while tackling its debt and potentially reshaping its distribution model.
6. SSENSE
SSENSE, the Montreal based luxury e‑commerce platform, filed for CCAA protection on August 15, 2025, following a creditor led application that surprised many in the fashion industry. Despite earlier high valuations and a reputation as a tastemaker for avant garde and street luxury labels, SSENSE was hit by mounting financial headwinds and inventory surpluses that strained cash flow. By late 2025, a successful bid for the company’s sale had been announced, with the transaction expected to close by February 13, 2026; however, questions remain about whether SSENSE will continue to operate as a standalone entity or be absorbed into a larger retail or technology group.
7. Joann Fabrics
Joann Fabrics filed for bankruptcy again on May 15, 2025, its second filing after the pandemic era craft boom faded and left the retailer with over $500 million in debt. The surge in “hobbyist” demand during lockdowns proved short lived, and Joann struggled to maintain sales volumes as consumers returned to pre pandemic routines and discretionary spending tightened. In 2026, Joann is closing underperforming stores while attempting a strategic pivot toward a more digitally focused craft marketplace, aiming to capture online DIY communities and subscription style engagement to stabilize its business.
8. Mosaic Brands
Mosaic Brands, one of Australia’s largest fashion groups and parent to chains such as Noni B, Rivers, and Katies, entered voluntary liquidation on July 1, 2025. The process has been notably contentious: courts ordered the appointment of a second liquidator because of potential conflicts of interest in the original wind down plan. Through 2026, the group is in the process of unwinding its extensive portfolio of brands and store leases, a drawn out liquidation that marks a major shift in the Australian retail landscape and raises questions about the future of value driven, multi banner fashion conglomerates in the region.
9. Lugano Diamonds
Lugano Diamonds, a high end jewelry company, filed for Chapter 11 on November 16, 2025 with the stated aim of facilitating a “value maximizing sale” rather than an outright collapse. Unlike mass market retailers battered by fast fashion and e‑commerce competition, Lugano’s filing is viewed as a strategic move to find a new owner and recapitalize amid a tightening luxury spending environment. In early 2026, the company is heading into a court supervised auction process that will determine whether the Lugano name survives under new ownership, potentially reshaping its positioning in the ultra luxury jewelry space.
10. SKKN by Kim
SKKN by Kim, the skincare and beauty brand launched by Kim Kardashian, filed for bankruptcy and began shutting operations on September 12, 2025. The filing followed reported losses at minority stakeholder Coty and the brand’s inability to match the commercial impact of Kardashian’s previous venture, KKW Beauty, despite significant social media visibility. As 2026 unfolds, SKKN is in wind down mode, with its remaining operations wrapping up and its intellectual property potentially being absorbed, repackaged or rebranded within Kardashian’s other business ventures illustrating how even celebrity backed labels can struggle to sustain traction in today’s crowded beauty market.
Analysis of Retail Trends into 2026
The wave of bankruptcies in 2025 and 2026 highlights three critical trends:
- The “Luxury Squeeze”: Even high end brands like Saks and Pat McGrath are not immune to liquidity crises when burdened with excessive debt.
- Fast Fashion Dominance: Legacy brands like Forever 21 are being outpaced by ultra fast fashion entities that operate with higher agility and lower overhead.
- Restructuring vs. Liquidation: While 2024 saw more restructurings, 2025/2026 has seen a rise in full liquidations (Forever 21, HBC), indicating a harsher environment for retail recovery.
