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It seems like every few weeks another store is making headlines for financial trouble or operational woes. In 2026, several well-known chains filed for bankruptcy as they struggle with rising costs, fewer shoppers in stores, and debt piling up as time goes on.
Bankruptcy isn't always the nail in the coffin, but it often leads to stores closing, restructuring, and plenty of uncertainty for employees and customers alike. It's also a reminder that even sturdy household names have to fight to withstand economic downturns.
Here are the major retailers that have filed so far this year and what you should know about them.
Saks Global
After merging with Neiman Marcus in late 2024, which unfortunately hurt more than it helped due to cash and inventory problems, Saks Global filed for bankruptcy in January of 2026.
At the time, the company had nearly $3.4 billion in debt, so it successfully sought financing to compensate vendors and right the ship. Since then, it has paid off 75% of what it owed, but along the way it closed multiple Saks and Neiman Marcus branded locations.
Eddie Bauer
Clothing giant and household name Eddie Bauer filed for Chapter 11 bankruptcy in February of 2026, pointing to supply chain issues, tariffs, inflation, and slow sales as the culprit. In the wake of the filing, the company closed all 175 brick-and-mortar locations.
Over 2,000 jobs appear to have been on the chopping block, in addition to the 60 cut when the company closed its Seattle HQ.
QVC Group
QVC Group, the parent company of more brands than you may expect (including HSN, Garnet Hill, and Ballard Designs), filed for Chapter 11 bankruptcy in April of 2026.
QVC Group has been struggling for many years due to the loss of revenue, mainly as folks change their shopping habits (despite having a core group of devoted, repeat customers).
Tariffs and a catastrophic warehouse fire back in 2022 also cut into company profits.
FAT Brands
With restaurants including Johnny Rockets, Round Table Pizza, and Fatburger under their umbrella, it may be surprising to learn FAT Brands filed for bankruptcy in January of 2026. But the company was sitting on top of over $1.5 billion in debt.
While FAT Brands appeared solvent and profitable from the outside, reports say growth was pushed primarily in a manner that accumulated debt, despite having many successful franchises.
Twin Hospitality Group
Once part of Fat Brands, Twin Hospitality Group, the parent company of Twin Peaks and Smokey Bones restaurants, became its own entity in 2025. However, in March of 2026, it filed for Chapter 11 bankruptcy on the heels of Fat Brands, just two months later.
The restaurant currently plans not only to maintain, but expand staffing and operations as a franchise. This tracks with debt problems being the reason for the initial filing as opposed to severely lagging sales.
Pat McGrath Labs
Visionary makeup artist Pat McGrath remains the creative brain behind her eponymous brand, despite filing for Chapter 11 bankruptcy in early 2026. The company also avoided the fate of the auction block, thanks to being acquired.
However, GDA Luma is now the owner of Pat McGrath Labs, which attempts to steer the company out of debt and into calm operational waters. It's one of many cosmetic brands that have sought bankruptcy protections in recent years.
Sleep Number
Slumping sales were the main reason Sleep Number headed to bankruptcy court in June, with the goal of merging with Sleep Number Canada to stabilize the business. With $1.3 billion in debt, the mattress seller has work to do to stay solvent. Competition with brands like Mattress Firm remains a stressor.
For the moment, there's no public plan to close stores or short vendors on what they're owed, which bodes well for the 40-year-old brand.
Francesca's
Francesca's couldn't pull off a second comeback. After a first attempt in 2020, the women's boutique chain filed for Chapter 11 bankruptcy again in February 2026 after backup financing fell through. They closed all remaining stores, saying goodbye to a once-popular mall staple.
The massive shuttering shows how tough it's gotten for clothing stores that depend on mall traffic to stay afloat. A 2023 data breach and stiff competition didn't help.
Bottom line
If there's one takeaway from bankruptcy filings in 2026, it's that no one is completely immune. Department stores, clothing chains, restaurants, and even QVC have all struggled as e-commerce competition, tariffs, and changing consumer spending continue to impact the economy.
While it's never fun to see familiar brands disappear, staying informed could help you shop smarter, take advantage of clearance sales (when it makes sense), and save money on bills by planning ahead if a favorite store closes or changes the way it operates.
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FAQs
What is Chapter 11 bankruptcy in simple terms?
Chapter 11 bankruptcy is a legal process that lets a company keep operating while it reorganizes its debts under court supervision. The business proposes a repayment plan that creditors vote on and a judge must approve. It is different from Chapter 7, which involves selling off a company's assets and shutting the business down for good. Most large retailers choose Chapter 11 because it gives them a chance to survive and keep at least some stores open.
Does filing for bankruptcy mean a store is going out of business?
Not necessarily. A company that files under Chapter 11 is usually trying to reorganize and stay in business, not close for good. It could emerge from the process leaner, get bought by new owners, or keep operating largely as before. A store only shuts down permanently if it liquidates, which happens under Chapter 7 or when a Chapter 11 case cannot produce a workable recovery plan.
What happens to my gift cards if a store files for bankruptcy?
Gift cards are treated as unsecured debt, so they get no special protection in bankruptcy. In a Chapter 11 reorganization, the company usually asks the court for permission to keep honoring gift cards, and judges often grant it because refusing would drive away customers. If the retailer liquidates instead, your card may lose its value, so the safest move is to use it as soon as you hear a store is in financial trouble.
More from FinanceBuzz:
- 12 ways to pocket up to $300.
- Are you a homeowner? Get a protection plan on all your appliances.
- 10 little weird hacks Costco shoppers should know.
- Learn how to escape the paycheck-to-paycheck grind.
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