20 Iconic Fashion Brands from the Past That Went Bankrupt
Even the most iconic fashion brands can fall from grace, proving that style alone isn’t enough to survive in the ever-changing world of retail.
- Alyana Aguja
- 6 min read
Fashion is a speedy business where even the most legendary brands can collapse under fiscal blunders, shifting consumer trends, and aggressive competition. From high-end titans such as Barneys New York to mall fixtures such as Wet Seal, numerous once-favorite brands have gone out of business, with some vanishing altogether and others fighting to revamp themselves. Their meteoric ascents and descents remind us that in fashion, not only is survival contingent on style, but also on clever business moves.
1. Barneys New York (1923–2019)
Image from The New York Times
Barneys was the ultimate luxury department store, renowned for its upscale designer offerings and private collaborations. Despite its prestige, record-high rent prices and a changing retail environment contributed to its demise. It went bankrupt in 2019, and Saks Fifth Avenue subsequently purchased its name.
2. Forever 21 (1984–2019, later re-established)
Image from The Guardian
After once being a fast-fashion behemoth, Forever 21 grew too fast, opening huge stores globally. The e-commerce revolution and shifting tastes resulted in sagging sales. It went bankrupt in 2019 but was subsequently acquired and remains in business under new management.
3. Payless ShoeSource (1956–2019, revived later)
Image from MassLive.com
Payless was a household name for discount footwear, but it couldn’t keep up with online shopping. After racking up debt and struggling with low store performance, it went bankrupt twice in 2017 and again in 2019. The brand has since been resurrected in a scaled-back form.
4. Esprit (1968–2020, U.S. division)
Image from The Business of Fashion
Esprit was a prominent competitor in casual clothing, especially during the ’80s and ’90s. However, financial woes due to waning relevance and the rise of fast fashion retailers resulted in bankruptcy. It petitioned for bankruptcy in its American operations in 2020, although it continues operating elsewhere.
5. American Apparel (1989–2017, later revived)
Image from Vox
Recognized for its provocative advertising and “Made in USA” ideology, American Apparel reached its zenith in the early 2000s. However, mismanagement, scandals within, and competition resulted in bankruptcy in 2017. Gildan Activewear subsequently acquired the brand but never recovered to its former glory.
6. Wet Seal (1962–2017)
Image from USA Today
A teen fashion staple of the ’90s and early 2000s, Wet Seal faltered as the shopping mall lost popularity. It went bankrupt in 2015 and again in 2017 after rebranding efforts failed. It now lives as an online store with a fraction of its past power.
7. True Religion (2002–2020, revived later)
Image from TeeHandUS
True Religion’s high-end denim was the status symbol in the 2000s. However, with the rise of skinny jeans and athleisure wear, sales of its iconic thick-stitched jeans collapsed. It went bankrupt in 2020 as sales continued to fall and the COVID-19 pandemic hit.
8. Diesel USA (1978–2019, U.S. division)
Image from Wikipedia
Diesel, known for its tough denim and outlaw brand image, suffered through dwindling mall traffic at its American business. Diesel USA went bankrupt in 2019 after a series of losses. The international brand survives, but its presence in the U.S. is weakened.
9. Charlotte Russe (1975–2019, later reopened)
Image from TODAY.com
A favorite among fashionable women’s wear, Charlotte Russe had to contend with fast-fashion chains such as H&M and Forever 21. It went out of business in 2019 and closed more than 500 stores. A new owner revived it later, but it is not what it used to be.
10. Rock & Republic (2002–2010, subsequently acquired)
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Famous for designer denim, Rock & Republic dominated the 2000s premium jeans phenomenon. Financial difficulties culminated in bankruptcy in 2010, and Kohl’s subsequently acquired the brand. It currently exists as a low-cost label instead of an upscale name.
11. Delia’s (1993–2014)
Image from Wikipedia
Delia’s was the quintessential ’90s teen catalog shop brand known for offbeat, teeny fashion. However, as consumer shopping became more sophisticated and rivals entered the fray, it lagged behind. It went out of business in 2014 and today exists only as an online brand with new ownership.
12. Caché (1975–2015)
Image from WSJ
A fashion-forward mall-based women’s evening wear boutique, Caché faced dwindling foot traffic and shifting fashion trends. After years of financial woes, it went bankrupt in 2015. Though it attempted to relaunch online, it never regained its stature.
13. Nasty Gal (2006–2016, subsequently acquired)
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Started by Sophia Amoruso, Nasty Gal was a cult hit for bold, retro-inspired clothing. However, its swift growth and poor financial management caused it to go bankrupt in 2016. Boohoo subsequently bought out the brand but lost much of its initial popularity.
14. Aeropostale (1987–2016, later relaunched)
Image from Wikipedia
A teen fashion giant during the early 2000s, Aeropostale battled fast fashion giants. It went bankrupt in 2016, shutting down hundreds of locations. A group of investors rescued it, and it still exists, albeit with fewer locations.
15. JNCO Jeans (1985-2018, briefly revived later)
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JNCO was the go-to for giant jeans during the ’90s raves. As fashion cycles turned, the brand tried a reboot but couldn’t attract new consumers. It officially closed up shop in 2018 despite reports of relaunching efforts.
16. Roberto Cavalli (1975–2019, later acquired)
Image from Brands Book
The Italian luxury brand, renowned for daring animal prints and sultry silhouettes, was beset by financial woes. It went bankrupt in 2019, shutting down U.S. operations and restructuring worldwide. New investors have since tried to revive the brand.
17. Rue21 (1976–2017, later revived)
Image from USA Today
Rue21 appealed to price-conscious teenagers but could not compete with fast fashion’s speed of turnover. It went bankrupt in 2017 and shut down hundreds of locations. Later, the company was revived under new leadership but is still a weaker retail player.
18. Vanity (1957–2017)
Image from Wikipedia
A fixture in Midwestern malls, Vanity offered trendy but budget-friendly women’s apparel. Falling mall traffic and competition caused bankruptcy in 2017, and all 137 locations were closed. The brand vanished from the market.
19. Betsey Johnson (1978–2012, subsequently acquired)
Image from The Brand Liaison
Betsey Johnson’s quirky, punk-fashion sensibility made it a legendary name, but she ran the company into bankruptcy in 2012 due to financial mismanagement. Steve Madden purchased it, keeping the name going but moving it to a more mass-market strategy.
20. Heatherette (1999–2008)
Image from Vintage Clothing Guides
A celebrity favorite in the early 2000s, Heatherette was known for its flashy, rebellious aesthetic. After a few successful years, financial struggles and waning interest led to its closure in 2008. Despite occasional nostalgia-fueled mentions, the brand has not returned.