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Fashion's Fall: Retailers Face Bankruptcies in 2025
30 Nov
Summary
- Consumers shift spending to cheaper fast fashion and secondhand options.
- US saw over 3,700 store closures in 2025 alone.
- Tariffs and economic woes hit brands like Forever 21 and Ssense.
The year 2025 has proven challenging for the fashion industry, with many brands seeking bankruptcy protection amidst an uncertain economic climate. Consumers are increasingly prioritizing value, gravitating towards fast-fashion giants like Shein and the secondhand market, thereby affecting the market share of established retailers.
Store closures have become rampant, with over 3,700 retail locations shutting down across the United States as of 2025. Companies are grappling with macroeconomic pressures, supply chain disruptions, and declining profits. Tariffs implemented by President Donald Trump have further complicated matters, forcing some brands to raise prices or reconfigure their operations to mitigate financial impacts.
Several well-known apparel brands have succumbed to these pressures. Forever 21, once a mall staple, filed for bankruptcy protection for the second time, citing intense competition from online retailers. Similarly, Ssense, a luxury e-commerce platform, filed for bankruptcy protection in Canada, with its CEO attributing the downturn to trade policies. Liberated Brands, operating Billabong and Quiksilver, also filed for Chapter 11 bankruptcy, ultimately ceasing US and Canadian retail operations.
