In 2025, only two U.S. fashion firms filed for bankruptcy with over $1 billion in liabilities: Claire’s Holdings LLC in August and F21 OpCo LLC in March. S&P Global Market Intelligence reports that healthcare and information technology sectors have higher bankruptcy rates, along with home fashion retailers.

Large U.S. corporate bankruptcies in the third quarter favored reorganization over liquidation, with 137 reorganizations and 69 liquidations. Most bankruptcies were in the utilities sector, followed by real estate and consumer staples. S&P data predicts the highest annual bankruptcy level since 2010.

Claire’s avoided liquidation by selling assets for $140 million to Ames Watson, closing 300 stores but saving 960 across North America. F21 OpCo liquidated, waiving a $323 million claim to benefit unsecured creditors. S&P attributes the rise in bankruptcies to weak balance sheets and macroeconomic challenges.

Shoe firms like Soleply and Amiga Shoes filed for bankruptcy in 2025. CaaStle and Hudson’s Bay also filed for liquidation. S&P reports that large bankruptcies are on track to reach their highest level since 2010, with over 580 cases filed by September. Interest payments on new debt may ease financial pressure.

Read more at Yahoo Finance: Fashion, Footwear Firms Hold Steady Despite US Corporate Bankruptcy Rise in Q3