Several popular U.S. companies filed for bankruptcy in 2025 as economic pressures continued to weigh on retailers, restaurant operators, and manufacturers. Rising inflation and shifting consumer habits have hit pharmacy chains, jewelry retailers, automotive suppliers, fragrance brands, and restaurant operators particularly hard.
10 Popular Companies That Filed for Bankruptcy in 2025
Several well-known U.S. brands filed for bankruptcy in 2025, including Joann Fabrics, Forever 21, Rite Aid, Claire’s, and IMG Holdings. These filings highlight how even long-standing and widely recognized businesses are navigating financial strain, with some using Chapter 11 as a path to restructure and survive.
1. Joann Fabrics
- When: January 15, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the District of Delaware
Craft and fabric retailer Joann made its voluntary Chapter 11 filing with plans to close more than half of its stores nationwide. This marked the company’s second bankruptcy filing after a previous petition filed on March 18, 2024.
The popular retail chain’s total assets as well as liabilities were then listed in the range of $1,000,000,001-$10 billion. Apart from this, Joann Fabrics owed between 50,001 and 100,000 unsecured creditors.
While the retailer operated more than 800 stores back in February 2025, it was planning to close around 500 of those in 49 states as part of the proceedings.
2. Forever 21
- When: March 16, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the District of Delaware
The fashion retailer filed for Chapter 11 restructuring process citing competition from e-commerce brands like Shein, along with other economic pressures. During its official announcement, Forever 21 said it was preparing to close more than 300 U.S. stores, along with its website.
The brand with a history of 41 years in the U.S. market had listed assets between $100 million and $500 million. Forever 21 had a debt of $1.58 billion by then, along with other anticipated liabilities.
The fashion retail chain had filed for another Chapter 11 process in 2019. The results this time were severe, though, as Forever 21 ultimately wound up its operations for good in the U.S.
3. Rite Aid
- When: May 5, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the District of New Jersey
Rite Aid, along with its subsidiaries, filed for a voluntary Chapter 11 process in May to maximize its sales value after selling all assets. According to Businesswire, the company had then decided to proceed under section 363 of the U.S. Bankruptcy Code with plans to secure $1.94 billion in new financing.
Legally represented by Michael D. Sirota from Cole Schotz P.C., the pharmacy giant had listed $1,000,000,001 to $10 billion in both assets and liabilities. According to the filing, Rite Aid then owed 25,001-50,000 creditors in total.
This was the second Chapter 11 filing in seven months for the 63-year-old pharmacy chain. However, at the end of the latest process, Rite Aid closed all 2,000-plus existing locations across the country and the company no longer operates any U.S. stores.
4. Claire’s Holdings LLC
- When: August 6, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the District of Delaware
The 25-year-old Illinois-based jewelry brand and several of its subsidiaries entered the Chapter 11 proceedings in August to restructure its debt and explore asset sales. Besides the proceedings in Delaware, it underwent the same process for its Canadian affiliate under the Companies’ Creditors Arrangement Act (CCAA).
Claire’s Holdings LLC had listed both assets and liabilities in the range of $1,000,000,001 and $10 billion. The jewelry/accessories retailer then owed around 25,001 to 50,000 creditors in total.
According to PRNewswire, following the Chapter 11 proceedings, Claire’s Holdings LLC signed a deal with one of Ames Watson’s affiliates. Through this arrangement, the affiliate of the private holding company acquired Claire’s business operations in North America.
5. IMG Holdings, Inc.
- When: August 11, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the District of Delaware
The longstanding fragrance brand, which owns Dana Classic Fragrances, filed for Chapter 11 protection in August. IMG Holdings, Inc. cited business reorganization through the sale of the trademark of various key fragrances via a Section 363 sale.
The official filing shows that the total assets of the fragrance business are between $1,000,001 and $10 million. Liabilities were listed between $50 million and $100 million. Its total number of unsecured creditors is between 50 and 99.
The Chapter 11 case of IMG Holdings, Inc. has not been completed yet.
6. Bravo Brio Restaurants, LLC
- When: August 18, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the Middle District of Florida
The parent entity owning Bravo! Italian Kitchen and Brio Italian Grille filed for Chapter 11 protection in August. Bravo Brio Restaurants, LLC opted for the process in an effort to reduce debt while continuing operations.
Owned by Earl Enterprises, the restaurant business has both assets and liabilities in the range of $50,000,001 to $100 million. It should also be noted that Bravo Brio Restaurants, LLC currently owes around 200 to 999 creditors.
Attorney R Scott Shuker from Shuker & Dorris, P.A. is currently offering legal representation to the company in the bankruptcy court.
7. First Brands Group, LLC
- When: September 28, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the Southern District of Texas
The popular automotive parts maker from Ohio applied for the Chapter 11 proceedings along with its 98 affiliates in September. First Brands Group, LLC decided to go ahead with this process to secure debtor-in-possession financing, which could help it run its operations smoothly.
According to Businesswire, the U.S. Bankruptcy Court for the Southern District of Texas approved the company’s First Day and Second Day motions to the global supplier for October 1 and November 6 & 7, respectively. The court also granted First Brands Group, LLC, the approval to access $1.1 billion in debtor-in-possession financing.
Further details related to the automotive parts company are awaited as the case is still active in the bankruptcy court.
8. Jack’s Donuts
- When: October 29, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the Southern District of Indiana
The U.S. donut chain from Indiana opted for a Chapter 11 bankruptcy filing to reorganize its finances and stabilize operations. Jack’s Donuts confirmed through its social media that the business was going to stay functional during the proceedings.
Official filing details reveal that the 64-year-old donut staple has assets between $1 million and $10 million. The liabilities of Jack’s Donuts are in the range of $10 million to $50 million. The bankruptcy case remains ongoing for the Indiana-based donut chain.
9. Buddy Mac Holdings, LLC
- When: December 4, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the Northern District of Texas
Buddy Mac Holdings, LLC recently filed for Chapter 11 bankruptcy process with plans to stay operational as the court supervised its proceedings. The latest decision is prompted by the 64-year-old furnishing chain’s financial pressures, including changing consumer behavior, a rising number of creditors, and high costs of operations.
According to the official filing, both assets and liabilities of Buddy Mac Holdings, LLC are in the range of $10,000,001 to $50 million. Attorney John J. Kane from Kane Russell Coleman Logan PC is offering legal representation to the company that owes around 1,000 to 5,000 creditors.
It should be noted that 48 associated affiliates of Buddy Mac Holdings, LLC have also applied for the Chapter 11 filing case, which is still active.
10. The Little Brown Box Pizza, LLC
- When: December 8, 2025
- Filing Type: Chapter 11
- Bankruptcy Court: U.S. Bankruptcy Court for the Central District of California
Currently operating as Pieology, The Little Brown Box Pizza, LLC recently made a voluntary Chapter 11 filing. With this, the 14-year-old pizza chain intends to keep serving patrons while the court guides it through a restructuring process.
The assets of Pieology are listed between $100,001 and $500,000 in the official filing. Whereas, the liabilities are in the range of $1,000,001 to $10 million. The pizza chain currently owes around 200 to 999 creditors.
The case is currently active in the U.S. Bankruptcy Court for the Central District of California.
The surge of bankruptcies this year serves as a reminder that even established operators must remain agile. Restructuring, asset sales, and operational adjustments are becoming standard tools for navigating financial strain.
