11 Popular Brands That Secretly Went Bankrupt
Some of the biggest names we once trusted and loved quietly slipped into bankruptcy without many people noticing. Behind the bright logos and loyal customers, financial troubles were building. These brands filed for bankruptcy while still seeming strong on the surface.
- Tricia Quitales
- 3 min read
Bankruptcy isn’t always loud; sometimes, it happens quietly while the brand keeps running stores, selling products, or posting on social media. Many well-known companies hit major financial trouble but kept it low-profile until the damage was done. In several cases, people didn’t realize these big names had gone bankrupt until long after the paperwork was filed. Here are 11 familiar brands that looked solid but were secretly sinking behind the scenes.
1. JCPenney (2020)
Dwaynep2010 on Wikimedia
Once a go-to for American families, JCPenney struggled for years with debt and falling sales. When the pandemic hit, it finally filed for bankruptcy protection. Many shoppers were shocked, as stores kept running even during the process.
2. RadioShack (2015, 2017)
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RadioShack was a tech staple for decades but couldn’t compete with online retailers. It quietly filed for bankruptcy twice, and many stores closed without fanfare. Some locations still exist, but the brand’s heyday is long gone.
3. Hertz (2020)
Matheus Bertelli on Pexels
The car rental giant filed for bankruptcy during the early months of the COVID-19 pandemic. Travel shutdowns and a heavy debt load brought the business to a halt. Surprisingly, Hertz continued renting cars during the process, leaving many customers unaware.
4. Gymboree (2017, 2019)
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Known for cute children’s clothes, Gymboree filed for bankruptcy not once but twice in just a few years. Its financial problems were hidden behind cheerful storefronts. The brand eventually shut down before being revived under new ownership.
5. Dean & DeLuca (2019)
Dean & Deluca on Wikimedia
Famous for upscale groceries and gourmet foods, Dean & DeLuca faced mounting debt and closed stores quietly. Even as fans hoped for a comeback, the company filed for bankruptcy. Many never realized the brand was struggling until it disappeared.
6. True Religion (2017, 2020)
True Religion on Wikimedia
The denim brand was once a status symbol, but fashion trends moved on. True Religion filed for bankruptcy twice, trying to stay afloat. Stores stayed open during the process, keeping the collapse mostly out of the spotlight.
7. Payless ShoeSource (2017, 2019)
Payless on Wikimedia
Payless offered affordable shoes for years but couldn’t keep up with changing shopping habits. It filed for bankruptcy twice and closed thousands of stores. The brand was later revived online, but many still consider it a thing of the past.
8. Pier 1 Imports (2020)
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Pier 1 was known for stylish home goods, but rising competition and weak online sales hurt badly. The brand filed for bankruptcy and began closing its stores. Many loyal customers were surprised, as some stores remained open well into liquidation.
9. Brooks Brothers (2020)
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America’s oldest clothier filed for bankruptcy after more than 200 years in business. Remote work crushed demand for suits and formalwear. It kept operating under new ownership, so many never realized the original company had gone under.
10. Guitar Center (2020)
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Despite being a favorite among musicians, Guitar Center carried heavy debt for years. It filed for bankruptcy during the pandemic but kept stores open. The brand survived, but the bankruptcy filing was a wake-up call for the music industry.
11. Forever 21 (2019)
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The fast-fashion giant filed for bankruptcy after rapid expansion and mounting debts. Stores stayed open in many places, so the bankruptcy flew under the radar. It later restructured and continued under new leadership, but its reputation took a hit.