U.S. Bankruptcies and Retail Closures Rise Sharply in 2025
The United States saw a sharp rise in bankruptcies and business shutdowns in 2025, reflecting mounting financial pressure across multiple industries. Corporate filings surpassed 717 cases in the first eleven months of the year, the highest level since 2010 and an estimated 14% increase over 2024. Analysts also pointed to a spike in large-scale failures, including at least 17 bankruptcy filings by companies with more than $1 billion in revenue during the first half of the year. Rising costs linked to supply chain pressures, high interest rates, and inflation were among the factors cited as contributing to the downturn, which was associated with roughly 70,000 job losses.¹
Retail, in particular, was hit hard as major chains either disappeared entirely or significantly reduced their store counts. Forecasts suggest closures could reach roughly 15,000 locations in 2025, far exceeding expected openings and resulting in a large net decline. Bankruptcies and liquidations involving brands like Party City and Joann illustrate how some retailers have struggled to adapt to changes in consumer behavior and ongoing operational challenges, especially as shoppers increasingly prioritize affordability and convenience.²
A dark year for US companies: 2025 sees record number of bankruptcies, La Voce di New York, December 28, 2025.
https://lavocedinewyork.com/en/business/2025/12/28/a-dark-year-for-us-companies-2025-sees-record-number-of-bankruptcies/3 retail brands vanished in 2025, Yahoo Finance, accessed December 2025.
https://finance.yahoo.com/news/3-retail-brands-vanished-2025-183300821.html