• Business bankruptcies have been on the rise in recent years, and the retail sector hasn't been immune.
• Storied brands like Saks and Eddie Bauer are using the protections to look for a new path forward.
• Here are some notable cases so far in 2026.

Some legendary retail brands have filed for bankruptcy in the early months of 2026.

US business bankruptcies have been on the rise in recent years, according to an S&P Global Market Intelligence analysis. First-quarter filings in 2026 marked the second-highest level since 2010, trailing only the same period last year. Among the 180 bankruptcies tracked in the first three months of the year, about two dozen were consumer discretionary and staples companies.

Uncertainty around consumer spending, inflation, and US tariff policy is likely to lead to higher restructuring levels throughout the year, S&P Global Market Intelligence said in April.

Bankruptcy isn't necessarily the end of the line for a company. Several companies, such as Saks Global and Eddie Bauer, are using the protections to reshape their businesses and focus on areas of potential growth this year.

Here are some notable retail bankruptcy cases that are unfolding in 2026, listed in order of initial filing.

Saks Global — filed in January, financing deal reached in April

Saks Global has been one of the higher-profile retail bankruptcy cases this year. After weeks of public speculation, the luxury store voluntarily filed for Chapter 11 bankruptcy protection in January.

The owner of Saks Fifth Avenue and Neiman Marcus has since said it would close some US stores, focusing more on luxury and less on off-price retail, such as its Saks Off Fifth and Neiman Marcus Last Call locations.

In April, Saks Global said it resolved a dispute with key landlord Simon Property Group and also received court approval to raise up to $500 million from a group of investors.

Saks Global aims to exit bankruptcy this summer.

Pat McGrath Labs — filed in January, exited in April

Cosmetics brand Pat McGrath Labs — sold in stores like Sephora, Ulta Beauty, and Nordstrom — said in April that it had completed a Chapter 11 process that it began in January. Founder Pat McGrath, known for styling top models, is staying on as chief creative officer.

The company said it received $65 million of financing and support that would allow it to pursue a new chapter of growth.

Fat Brands — filed in January, case proceeding

Fat Brands, the parent company of burger joints like Fatburger and Johnny Rockets, filed for Chapter 11 in January to restructure about $1 billion in debt.

The company cited a "challenging operating environment over the last few years" and said its 18 brands and 2,200 restaurants would remain operating as usual during the bankruptcy process.

A sale of the business could come as early as May.

Francesca's — filed in February, liquidation in March

Women's fashion retailer Francesca's once again filed for Chapter 11 in February, a few years after it was acquired out of an earlier bankruptcy.

With about $30 million in secured debt, as much as $100 million in liabilities, and no buyer, the company said in March that it would liquidate all inventory and close all 457 stores.

Eddie Bauer — filed in February, case proceeding

Outdoor retailer Eddie Bauer filed for Chapter 11 in February. Catalyst Brands, which owned Eddie Bauer's US and Canadian retail operations, said it needed to wind down the brand's nearly 200 stores after failing to find a buyer.

The bankruptcy does not affect Eddie Bauer's manufacturing, wholesale, or e-commerce operations, nor its retail business outside the US and Canada. Japan is home to several Eddie Bauer stores.

QVC — filed in April, expected exit in July

Home-shopping company QVC Group said in April that it was entering Chapter 11 to restructure its finances for QVC, HSN, and Cornerstone Brands.

The company said it plans to continue operating as usual with no planned layoffs or furloughs. The move is expected to last about 90 days and leave the company with $1.3 billion in debt, down from $6.6 billion.

QVC and HSN popularized TV-based shopping, but the company has faced stiff competition as audiences shift toward social-shopping platforms like TikTok Shop.

• Saks Global filed for bankruptcy protection earlier this year.
• Now the luxury retailer is looking to sell off its corporate jet for $6 million.
• The sale, which requires court approval, would boost Saks' liquidity, the retailer said in a filing.

Bankrupt luxury retailer Saks Global is looking to shed a high-end executive perk — its sole corporate jet.

In a recent court filing, Saks Global, the owner of department stores Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, detailed its plan to sell its 2003 Gulfstream G400 jet for $6 million to a private buyer.

The jet, which can carry up to 16 passengers and is powered by two Rolls-Royce engines, was primarily used by Saks executives for business travel and to "meet operational needs," attorneys for the retailer said in the Sunday filing.

When the jet was not in use for business purposes, Saks "allowed certain current and former executives and directors" of the company to use the aircraft for personal travel under time-sharing agreements, the court papers said.

The proposed sale, which requires approval from the federal Texas bankruptcy court where Saks filed for Chapter 11, would "enhance" Saks' liquidity "by eliminating unnecessary costs and expenses," the retailer's attorneys wrote in the filing.

Saks hired aviation broker Guardian Jet to market the aircraft after the luxury giant filed for Chapter 11 bankruptcy protection in January, the court filing said.

The broker and Saks negotiated with prospective buyers and ultimately secured the "best and highest sale price" from the buyer, identified in the court documents as Jones Aviations LLC.

Under the terms of the agreement, the buyer would put down a $250,000 refundable deposit. The deal also includes a $210,000 broker fee for Guardian Jet.

A Saks spokesperson told Business Insider in a statement on Tuesday that the retailer's "leadership has made the decision to sell the company's legacy plane as it continues prioritizing the disciplined use of capital."

"This action represents another deliberate step to direct investments toward the areas of the business that will drive meaningful growth for a stronger Saks Global," the spokesperson said.

Saks filed for Chapter 11 on January 13 after missing payments to vendors and building a precarious debt load. At the time, Saks owed hundreds of millions of dollars to creditors, including Chanel and LVMH.

The cost cutting started almost immediately. In February, Saks said it would shutter nearly all of its discount Saks Off Fifth and Neiman Marcus Last Call locations, as well as several Saks Fifth Avenue locations. The next month, the company announced more closures.

Following the move, 15 Saks Fifth Avenue locations and 33 Neiman Marcus locations remain.

The retailer expects to emerge from bankruptcy during the summer.

While Saks said in the Sunday court filing that selling off the Gulfstream jet would "maximize value for the benefit of all creditors," won't cover much. Roughly two weeks of Saks' legal bills in January totaled $7.2 million, court papers showed.

• Saks Global is closing more stores, including locations of its flagship brand and Neiman Marcus.
• In January, Saks filed for bankruptcy after failing to pay vendors for over a year.
• The company says it is now focusing on the luxury sector.

Saks Global, the bankrupt company behind Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, is continuing to close stores.

In March, the company said it would close 10 Saks Fifth Avenue and two Neiman Marcus locations. The news came after a February announcement that it would close eight Saks Fifth Avenue stores and one Neiman Marcus, as well as nearly all of its Saks Off Fifth and Neiman Marcus Last Call locations.

Following the closures, only 15 Saks Fifth Avenue locations will remain open, according to an updated press release. Thirty-three Neiman Marcus stores will continue operating, the company said.

"Our go-forward store portfolio will comprise the best performing and most desirable locations in markets with the highest concentration of luxury customers," Geoffroy van Raemdonck, Saks Global's new CEO, said in a statement announcing the closures.

Word of the latest wave of closures came with some good news for the company: More than 500 brands have resumed shipping to Saks' retailers after the company had struggled with inventory for months.

"The Company has reached or nearly reached agreements with more than 175 brands across all categories," the statement said.

In January, Saks Global filed for Chapter 11 bankruptcy protection following a year marked by missed payments and restructuring. The company owes hundreds of millions of dollars to brands like Chanel and LVMH.

As part of its turnaround plan, Saks said in January that it was "sharpening its focus on luxury" and would close the majority of its discount stores.

Saks Off 5th's website, a separate legal entity from Saks Global, hosted a liquidation sale and is shutting down.

Earlier in January, Saks shut down a facility in Florida and said it would lay off at least 74 positions.

Here is the full list of Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Last Call locations closing:

Saks Fifth Avenue locations closing:

1. The Summit (Birmingham, AL)

2. Polaris Fashion Place (Columbus, OH)

3. American Dream (East Rutherford, NJ)

4. Shops at Canal Place (New Orleans, LA)

5. Bala Plaza (Philadelphia, PA)

6. Biltmore Fashion Park (Phoenix, AZ)

7. Stony Point Fashion Park (Richmond, VA)

8. Utica Square (Tulsa, OK)

9. Beachwood Place (Beachwood, OH)

10. Wisconsin Avenue (Chevy Chase, MD)

11. Michigan Avenue (Chicago, IL)

12. South Coast Plaza (Costa Mesa, CA)

13. Las Vegas Boulevard (Las Vegas, NV)

14. Long Island (Huntington Station, NY)

15. Triangle Town Center (Raleigh, NC)

16. North Star Mall (San Antonio, TX)

17. Plaza Frontenac (St. Louis, MO)

18. Tysons Galleria (Tysons, VA)

Neiman Marcus locations closing:

1. Copley Place (Boston, MA)

2. Ala Moana (Honolulu, HI)

3. Topanga (Canyon Park, CA)

Saks Off 5th locations closing

1. Mebane (Mebane, NC)

2. Charleston (Charleston, SC)

3. Grand Prairie (Grand Prairie, TX)

4. Ala Moana (Honolulu, HI)

5. Petaluma (Petaluma, CA)

6. Glendale (Glendale, AZ)

7. Tucson (Tucson, AZ)

8. Merrimack (Merrimack, NH)

9. Riverhead (Riverhead, NY)

10. Clinton (Clinton, CT)

11. North Atlanta (Woodstock, GA)

12. Aurora Chicago (Aurora, IL)

13. Dallas Park (Dallas, TX)

14. Northbrook (Northbrook, IL)

15. Eagan (Eagan, MN)

16. Columbus (Columbus, OH)

17. San Diego (San Diego, CA)

18. Camarillo (Camarillo, CA)

19. Ontario (Ontario, CA)

20. Milpitas (Milpitas, CA) 21. State Street (Chicago, IL)

22. Stamford High Ridge (Stamford, CT)

23. Greenburgh (Greenburgh, NY)

24. Arundel (Hanover, MD)

25. Hawaii (Honolulu, HI)

26. Palm Desert (Palm Desert, CA)

27. Scottsdale (Scottsdale, AZ)

28. Phoenix (Chandler, AZ)

29. Eastchester (Eastchester, NY)

30. Bridgewater (Bridgewater, NJ)

31. Clarksburg (Clarksburg, MD)

32. Deer Park (Deer Park, NY)

33. Shrewsbury (Shrewsbury, NJ)

34. Elizabeth (Elizabeth, NJ)

35. Boston (Somerville, MA)

36. Wrentham (Wrentham, MA)

37. Orlando Vineland (Vineland, FL)

38. Naples Park Shore (Naples, FL)

39. Orlando (Orlando, FL)

40. Tampa (Lutz, FL)

41. Ellenton (Ellenton (Tampa), FL)

42. Destin (Destin, FL)

43. Charlotte (Charlotte, NC)

44. Atlanta (Woodstock, GA)

45. Hilton Head (Bluffton, SC)

46. Rosemont (Rosemont, IL)

47. Cypress (Cypress, TX)

48. Sugarland (Sugarland, TX)

49. Katy (Katy, TX)

50. Costa Mesa (Costa Mesa, CA)

51. Beverly Connection (Los Angeles, CA)

52. Woodland Hills (Woodland Hills, CA)

53. Las Vegas N (Las Vegas, NV)

54. Livermore (Livermore, CA)

55. San Antonio (San Antonio, TX)

56. Cabazon (Cabazon, CA)

57. Las Vegas S (Las Vegas, NV)

Last Call locations closing:

1. Sawgrass Mills (Sunrise, FL)

2. Desert Hills Premium Outlets (Cabazon, CA)

3. Grapevine Mills (Grapevine, TX)

4. San Marcos Premium Outlets (San Marcos, TX)

5. The Outlets at Orange (Orange, CA)

Update: April 7, 2026 — This story has been updated to include the latest number of Saks Fifth Avenue locations that will remain open.

• Two consumer bankruptcy attorneys said they're seeing more younger clients.
• The lawyers cited rising living costs and stagnant wages as drivers of the trend.
• They also said they're seeing more clients with massive debt, thanks to online gambling.

For some young adults crushed by heavy debt loads, bankruptcy has emerged as an escape hatch.

Two consumer bankruptcy attorneys told Business Insider they've seen a noticeable uptick in Gen Z and young millennial clients, ages of 25 and 35, in recent years — with one saying their share has increased severalfold.

The lawyers pointed to soaring living costs, lagging wages, and the ease of racking up credit card debt as key forces behind the trend. Factors like buy now, pay later loans and online betting are accelerating the rate at which some young people spiral into debt, they said.

"We're definitely seeing more young filers, and it's not because they're irresponsible," said Florida bankruptcy attorney Chad Van Horn. "It's because they entered adulthood during one of the most financially distorted environments in decades."

Personal bankruptcy filings in the United States have been on the rise since their COVID pandemic-era low in 2022. Still, they remain far short of the post-Great Recession peak in 2010, when cases topped about 1.5 million.

More than 533,000 individual bankruptcy cases were filed last year, according to the American Bankruptcy Institute, citing data from Epiq Bankruptcy Analytics.

Nearly 333,000 of those 2025 filings were Chapter 7 cases — the most common form of personal bankruptcy — which can erase most unsecured debts, including credit card balances or medical bills.

Chapter 13 filings, which involve a repayment plan to pay down some or all debts, accounted for just over 200,000 cases.

"What we're seeing is sort of the hangover from several years of government stimulus and all the various economic things that have driven up costs and expenses while keeping wages fairly flat," said Ed Boltz, a North Carolina bankruptcy attorney.

High consumer debt for young filers

Although there's no comprehensive, official data source tracking the ages of bankruptcy filers in the US, both Boltz and Van Horn said young adults are now showing up in greater numbers than before, pushing Van Horn's firm to rethink how it markets to clients.

"It's extremely surprising," said Van Horn, adding that 30% to 35% of his firm's roughly 4,000 clients last year were between the ages of 25 and 35. Historically, he said, that age group made up just 5% to 10% of the caseload.

The surge in younger clients has forced Van Horn's law firm to change its marketing strategy, the attorney said.

"We need to be where the 25 to 35 year olds are because they're not necessarily in the same place that the 55 year old is getting their information from," said Van Horn.

As Business Insider has previously reported, a wave of recent TikTok videos shows young people championing bankruptcy as a way to wipe out massive amounts of debt. Some called bankruptcy the "best" decision they've ever made.

Boltz said his firm handled about 2,000 bankruptcy cases in 2025, with about 20% of clients in the 25 to 35 range. He noted that it's unclear whether young adults now represent a larger share of filers overall or whether the increase reflects the broader rise in cases.

Even so, Boltz said his firm has seen the greatest growth in bankruptcy filings from young adults and seniors in recent years.

Young filers often carry significant student loan debt, which is generally not dischargeable in bankruptcy. They also face escalating housing and living costs that put more strain on their budgets, the attorneys said.

Ready access to credit cards, personal loans, and buy now, pay later programs has compounded the problem, making it easy for young people to rack up debt quickly, they said.

"That formula is just a bad formula for Gen Z," said Van Horn, who explained that many once relied on gig work to close budget gaps. "But a lot of them are burning out, and that work isn't paying what it used to."

He said substantial consumer debt is a common factor among his younger clients. And for some, online sports betting has become a major contributor to that debt.

Gambling debts are also on the rise

Both Van Horn and Boltz told Business Insider that they've been seeing a growing number of young clients — men in particular — with tens of thousands of dollars in credit card debt accumulated through online gambling.

"The gambling is really the one that has in the last year, year and a half, really taken off," Boltz said, adding, "We've started to see people with $20,000, $30,000, $40,000 of fairly rapid credit card that they've incurred" through online betting.

Van Horn said he's increasingly seen younger people get "addicted to gambling," a trend he believes is being amplified by a culture of FOMO or fear of missing out.

It's the idea, he said, that "everybody's making money, everybody's having fun" and then "you get involved, and you lose all your money."

Popular sports betting companies like DraftKings and FanDuel have recently stopped accepting credit card deposits for bets. DraftKings ended the practice in August, and FanDuel followed earlier this month.

The crypto-based prediction market Polymarket has allowed users to fund their accounts with credit cards since 2024.

"We are seeing a lot more where we have clients who are very young, mid 20s, early 30s, who overwhelmingly tend to be men, who have run up pretty massive credit card debts gambling," said Boltz.

"The apps are explicitly designed to part you from your money."

Are you a young person who has filed for bankruptcy or is considering filing for bankruptcy? Contact this reporter via email at nmusumeci@businessinsider.com.