"An uncertain economic environment has led some consumers to be more selective about where they spend their money. As a result, some are reaching for cheaper styles - fast-fashion retailers like Shein took market share from competing brands in 2024, according to data and analytics company GlobalData - or buying secondhand clothing. Many retailers and restaurants, such as baby apparel brand Carter's and department store chain Macy's, have been shuttering stores."
"President Donald Trump's tariffs have also created new challenges for fashion brands, from Abercrombie & Fitch to Nike, some of which have said they're raising prices or altering their supply chains to minimize the financial impact. However, other companies haven't been able to bounce back from waning traffic, tariffs, and more. These apparel brands filed for bankruptcy protection in 2025. Forever 21 was once a mainstay in fast fashion for young women shopping at the mall."
Multiple fashion brands and retailers filed for bankruptcy protection in 2025 amid an uncertain economic environment and shifting consumer behavior. Consumers increasingly chose cheaper fast-fashion options or secondhand items, enabling online rivals like Shein and Temu to capture market share in 2024. Over 3,700 store closures occurred across the US in 2025, affecting brands including Carter's and Macy's. Tariffs imposed under President Donald Trump prompted some companies to raise prices or change supply chains to limit financial damage. Forever 21 experienced sustained losses, filed Chapter 11 twice, and cited the "de minimis" $800 rule as a competitive disadvantage.
Read at Business Insider
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