Retail reckoning: CaaStle, Hudson’s Bay, and Forever 21 lead grim wave of 2025 liquidations

The first half of 2025 has been marred by an increasing number of retailers and their partners descending into bankruptcy, and ultimately liquidation, as the market continues to grapple with waning consumer confidence and heightened competition. From Forever 21 to Hudson’s Bay, we explore some of the most notable bankruptcies of the year so far, what caused their downfall and where they currently stand…

CaaStle

Resale platform CaaStle was already shrouded in controversy by the time it filed for bankruptcy in June. Amid concerns over financing, CEO Christine Hunsicker and other CaaStle executives had been accused of misrepresenting funds, and Hunsicker ultimately stepped down from the company. The platform had also found itself on the receiving end of a legal dispute over a settlement agreement with former collaborator Express.

In April, CaaStle secured a 2.75 billion dollar bridge loan to support a bankruptcy process, which it was said to have entered into in June. The Chapter 7 petition, filed as case number 25-11187 in the District of Delaware, showed the company had assets in the range of 10 to 50 million dollars, with liabilities in between 10 to 50 million dollars. The firm has opted to liquidate its remaining assets instead of reorganising. Hunsicker, meanwhile, is facing federal charges over allegations of defrauding investors and falsifying income statements.

Hudson’s Bay

Last year, the Canadian arm of Hudson’s Bay Co. (HBC) separated from its US counterpart, which had acquired Neiman Marcus Group and set out to create a luxury retail powergroup Saks Global. As this process came to fruition, the future of HBC in Canada became more and more uncertain. By March 2025, the company filed for creditor protection to restructure its operations, citing economic headwinds and trade tensions as the primary cause.

While executives initially sought to ensure HBC remained on Canada’s high streets, days later the company decided to instead liquidate the business after failing to find sufficient financing to proceed with a restructuring plan. Over the course of the following months, the company slowly began to close all of its 80 stores across the region. During this time, the intellectual property of HBC was snapped up by Canadian Tire Corporation, which said it intended to maintain the identity of the storied retailer. Elsewhere, other investors and retailers began stepping in to acquire the soon-to-be empty commercial sites – among them Chinese investor Ruby Liu, who is believed to be planning an expansion of her mall estate.

Forever 21

Fast fashion chain Forever 21 first hit financial turbulence in 2019, when it filed for Chapter 11 bankruptcy and launched a restructuring that resulted in the closure of several stores and an exit from some international markets. After its acquisition by a consortium led by Authentic Brands Group, the retailer attempted to put the pieces back together, strengthening ties with other fast fashion players, like Shein, and shuffling its leadership. This, however, was unable to curb what was to be another bankruptcy filing just years later.

This time, the company’s US operator, F21 OpCo, entered into a bankruptcy process, a one that would eventually see the closure of all the retailer’s 350 plus stores across the country. F21 was given until April 30 to find a buyer for its business, however, with no appropriate partner stepping forward, liquidation became the resulting option. Forever 21’s brand and e-commerce channels, including in Canada, Mexico and Asia-Pacific, remain active in some international markets, where they are managed by licensees associated with Authentic Brands Group.

Hemper

Hemper, a Spanish brand that had established a regenerative fashion model, succumbed to insolvency in June, leading the label to file for liquidation. In the face of rising complexities among ethical supply chains, Hemper was unable to meet its financial obligations. With its filing, however, the company is hoping to explore new ways to continue beyond its current nine year lifespan. One such way could be in the form of an acquisition bid on some of its assets, made known in its liquidation request in a Madrid court. The status of this bid, and whether it includes part of or the whole business, is currently unclear. The brand’s future rests on whether creditors approve the liquidation plan and, if so, which direction is chosen; a new owner or a restructuring.

Liberated Brands

Liberated Brands, the former operator of Quiksilver and Billabong, filed for Chapter 11 protection in February. It was confirmed in a filing with a Delaware court that the company had opted to wind down its North American operations and would transition its licenses, including those with Authentic Brands Group, to new partners that were “actively investing in their growth”. An associated liquidation process, overseen by Gordon Brothers, has since been enacted, and will result in the closure of Liberated’s 100-plus store network in the US. The company’s CEO Todd Hymel blamed the shift in consumer preference towards fast fashion as the cause of the company’s troubles.

Soleply

Sneaker retail chain Soleply filed for bankruptcy protection in March after rapid expansion financed by short-term loans left it with high-interest debt that impacted inventory levels. The company filed for Chapter 11 bankruptcy in New Jersey, telling the court that it wished to reorganise its debts and possibly exit some leases, including for locations it has not yet opened. Soleply moved to close four of its six stores, returning its focus to its highest performing location in Cherry Hill, New Jersey.

New Guards Group

Trouble at Italian brand management firm New Guards Group (NGG) began mounting following the sale of its parent company Farfetch to Coupang. The South Korean e-commerce giant made it clear that its primary focus was Farfetch, and that other operations under the platform’s umbrella would be put aside. While initially, it looked as though the group would change hands, no official sale seemingly came to be, and NGG was left in a precarious position, eventually resulting in partners, like Authentic Brands Group, pulling out of unfulfilled contracts.

NGG filed for bankruptcy protection in Italy as its pursuit for a buyer continued to trudge on. What followed was the offloading of its portfolio of premium and luxury brands. While the founders of Alanui, Ambush, Heron Preston and Opening Ceremony bought back their labels, Palm Angels was acquired by US firm Bluestar Alliance. As it continues to undergo a restructuring, the company still holds licensing agreements or operates the likes of Off-White, Kirin by Peggy Gou and Unravel Project.

Joann

After accumulating a significant amount of debt, US textiles retailer Joann filed for Chapter 11 bankruptcy protection in January 2025, for the second time in less than a year – the last filing being March 2024. The company cited heightened competition and declining sales as primary causes, while pressure from suppliers, many of whom were among the companies owed part of 133 million dollars, also impacted the retailer, with orders and deliveries often cancelled or delayed. After previously attempting to turnaround the business following the first bankruptcy, at which time the company went private, Joann had most recently opted to close all of its 800 US stores by the end of May 2025.

Companies at risk…

Claire’s

While 2023 was a year of promise for Claire’s, getting back on its feet following a bankruptcy filing in 2018, the teen-focused accessories retailer has continued to face mounting financial challenges, making its future currently uncertain. Reports have recently begun speculating that the business was eyeing a sale of its store networks in Europe and North America, where it is also said to be mulling a Chapter 11 filing. If followed through, this would come shortly after the company’s receivership entry in France, where it is now looking to sell its properties.

Everlane

Everlane, a brand that has long championed sustainability values, has fallen into the high-risk category of CreditRiskMonitor’s Payce scoring. According to the platform, the label has an estimated 10 to 50 percent chance of filing for bankruptcy within a year after grappling with profitability issues and management turnover. Everything may not all be lost, however. In July, the company’s new CEO, Alfred Chang, unveiled an investor-backed growth strategy, putting a renewed focus on scaling and financial stabilisation.

Saks Global

While not cited as a firm with imminent risk, Saks Global’s precarious financial position has thrown doubt over what is to come. The company, formed following a 2.7 billion dollar acquisition of Neiman Marcus, much financed with 11 percent junk bonds, reported an adjusted loss of around 100 million dollars in FY24, and sales continued to fall into the first quarter of the current fiscal year. S&P placed Saks Global on a negative credit watch, expressing concern over liquidity and vendor stability, however, was able to regain some certainty after securing a 600 million dollar financing package in June. While this somewhat served as a light at the end of the tunnel, the company is continuing to face a “modest” EBITDA forecast, delayed shipments from vendors and looming debt obligations.