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8 Big-Name Brands That Filed for Bankruptcy in 2026 - Is Your Favorite on the List?

Why did these big-name retailers seek bankruptcy protection in 2026?

By Amanda Machado , Edited by Calista Headrick

Updated Sept. 21, 2026

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It seems like every few weeks, another store makes headlines for financial trouble or operational woes. In 2026, several well-known chains filed for bankruptcy as they struggled with rising costs, fewer shoppers, and mounting debt.

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 in 2026 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 2026. Financial pressures, including liquidity problems, inventory challenges, and strained vendor relationships, contributed to the filing.

The company emerged from bankruptcy on June 26, 2026, under a new name: Exemplar Luxury Group (ELG). The company completed a restructuring that reduced its debt by nearly 75%.

The restructuring also significantly reduced its retail footprint. ELG emerged with 49 stores across its luxury retail portfolio after closing numerous Saks Off 5th, Saks Fifth Avenue, and Neiman Marcus locations.

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Eddie Bauer

Clothing giant and household name Eddie Bauer filed for Chapter 11 bankruptcy in February 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 2026.

QVC Group had been struggling for many years due to the loss of revenue, mainly as folks changed their shopping habits (despite having a core group of devoted, repeat customers).

The company successfully completed its restructuring and emerged from bankruptcy on August 6, 2026. Its turnaround included reducing total debt by more than $5 billion and securing access to a new $600 million asset-based lending facility.

QVC Group continues to operate its live-shopping, television, streaming, and e-commerce businesses. Its emergence from bankruptcy represents a financial restructuring rather than the disappearance of its retail brands.

FAT Brands

With restaurants including Johnny Rockets, Round Table Pizza, and Fatburger under its umbrella, it may be surprising to learn FAT Brands filed for bankruptcy in January 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

Twin Hospitality Group, the company behind Twin Peaks and Smokey Bones, filed jointly with FAT Brands for Chapter 11 protection on January 26, 2026.

A major development came in June, when the court-approved sale of substantially all Twin Peaks-related assets closed on June 15. Twin Peaks subsequently entered a new operating arrangement under Summit Acquisitions, a group that includes existing franchise operators.

The brand announced that it would no longer be associated with FAT Brands and would return to privately held ownership as Summit Twin Hospitality I, LLC. Its existing corporate leadership team remained in place.

This means Twin Peaks' story is not simply one of restaurant closures. The brand moved into a new ownership and operating structure following the bankruptcy-related asset sale.

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.

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Sleep Number

Slumping sales were the main reason Sleep Number filed for Chapter 11 bankruptcy on June 12, 2026, with about $672.5 million in debt. But the filing didn't mean the company was going out of business.

Instead, Sleep Number agreed to sell its assets to Canadian retailer Sleep Country Canada in a deal that closed July 31. The sale gave the mattress brand a path forward under new ownership, and there was no public plan to close stores as part of the transaction.

Sleep Number had already closed 44 non-operational locations before its bankruptcy filing. The company said it intended to keep the vast majority of its remaining stores open, and no plan was announced for widespread store closures as part of the sale to Sleep Country Canada. However, the buyer retained the ability to decide on individual store leases after the transaction closed in July.

That distinction is important for customers. A bankruptcy filing can sound like the end of a familiar retailer, but Sleep Number's restructuring was designed to keep the business moving rather than shut it down.

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.

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