2025 was marked by significant takeovers and bankruptcies in the US fashion industry. These included the merger of JCPenney with the SPARC Group, the ownership changes at Versace and Stuart Weitzman as well as new owners for Dockers, Hanesbrands and Dickies. Forever 21’s switch to a purely online model and the impending bankruptcy of Saks Global were also influential.
While successful, strategic players completed transactions often worth more than $1 billion, other struggling retailers were forced to close stores across the country. These developments reflect fundamental changes in consumer behavior and retail business models. We take a closer look at some of the biggest consolidations and collapses in the US fashion industry in 2025 and the current situation.
Blockbuster Acquisitions and Mergers: Strategic Bets on Size and Brand Strength
There were numerous takeovers in 2025. Some players expanded their portfolios with traditional brands. Others consolidated their brands into new groups to strengthen their position in the US market.
The year began with the news that US department store group JCPenney and Sparc Group were merging to form a new company, Catalyst Brands. The all-stock transaction created a retail portfolio with six brands. It is supported by shareholders including Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein.
In January, the US brand company WHP Global completed the acquisition of Vera Wang. The legendary designer remains on board as founder, chief creative officer and shareholder. WHP Global also signed a new licensing agreement with Batra Group to launch a contemporary ready-to-wear line by Vera Wang in the UK and Europe.
The US group Tapestry Inc. streamlined its portfolio this year. She sold the Stuart Weitzman shoe brand to the Caleres shoe company for $105 million. The sale allowed Tapestry Inc. to focus on its core brands, Coach and Kate Spade.
Authentic Brands Group continued its aggressive acquisition strategy this year. She added both Guess and Dockers to her extensive portfolio. In May, Authentic Brands Group announced that it had entered into an agreement to [311 Millionen US-Dollar](https://fashionunited.de/nachrichten/business/authentic-schliesst-311-millionen-us-dollar-deal-zur-ubernahme-von-dockers-von-levi-strauss-ab/2025052061659 to acquire Dockers from Levi Strauss. In doing so, it diversified its brand portfolio across different price points and categories. In August, the company then announced plans to acquire the intellectual property rights of To acquire Guess for $1.4 billion, it secured a 51 percent stake in the company that owns those rights.
There was also a strategic acquisition in the luxury fashion sector this year. The Prada Group signed a definitive agreement in April to acquire Versace from US-based Capri Holdings for around $1.4 billion. The transaction was officially closed on December 2nd. The sale represented a strategic complement for both Italian luxury houses. Prada was able to expand its portfolio, while Versace benefited from the resources and operational expertise of a larger parent company.
One of the most significant transactions of the year took place in the sporting goods sector. US retailer Dick’s Sporting Goods bought Foot Locker for $2.4 billion. The acquisition was first announced in May and approved by shareholders in August. The transaction was completed in September. The merger creates an impressive sporting goods retail empire. Dick’s is therefore in a position to dominate both the sporting goods retail sector and the sneaker culture sector.
Canadian company Gildan Activewear announced plans to acquire Hanesbrands in August. The transaction valued Hanesbrands at around $4.4 billion. The deal, completed in December, brings the two companies together. Your well-known brands such as Hanes, Playtex, Maidenform and Gildan will be brought together under one roof. This doubles the size of the company, which now focuses on integration to achieve significant cost synergies.
Another significant acquisition this year was the privatization of Skechers by investment firm 3G Capital. The $9.4 billion acquisition was completed on September 12. The transaction, which received all necessary regulatory approvals, was a bold bet on the footwear brand’s international growth potential. Although Skechers does not enjoy the cult status of Nike or Adidas, the acquisition underscored investors’ confidence in brands with proven operational performance and consistent market share gains.
US-based VF Corporation (VF Corp) announced plans in September to sell its iconic workwear brand Bluestar Alliance for $600 million. The deal, completed in mid-November, adds Dickies to Bluestar’s portfolio, which also includes Off-White and Palm Angels. Bluestar plans to expand the brand with new product lines, partnerships and a broader global presence.
Bankruptcies: Final chapters and damage limitation
The financial turbulence continued for many fashion retailers and brands in 2025. Several established players have had to cave under the pressure and in some cases close their doors. For some it was the final curtain. For others, it was a chance to reinvent themselves and emerge stronger. For many, the way forward is still unclear.
The global accessories retailer faced increasing financial pressure in 2025. The divisions in the USA, Great Britain and France filed for bankruptcy protection while potential buyers were sought. In August, Claire’s Holdings agreed to sell its North American operations and intellectual property to a subsidiary of private holding company Ames Watson. This occurred as part of the Chapter 11 bankruptcy and restructuring proceedings in the USA and Canada. The liquidation of many branches has been suspended while the sale awaits court approval. The aim is to maintain the brand’s retail presence and long-standing appeal.
Perhaps the most emblematic bankruptcy came from Forever 21. The company filed for Chapter 11 in March 2025 for the second time in six years, after already running into trouble in 2019 and closing stores in select markets. The retailer, acquired by Authentic Brands Group, attempted a turnaround through partnerships with fast-fashion players like Shein and leadership changes, but failed to stabilize. F21 OpCo announced plans to close all of its 350+ U.S. stores in March. However, in September, Authentic Brands named new US partners to drive digital growth, wholesale expansion and innovation in children’s fashion. Unique Brands is responsible for e-commerce and wholesale men’s fashion; Mark Edwards Apparel for wholesale women’s fashion; and Kidz Concepts for children’s fashion. This is intended to strengthen the brand’s omnichannel presence.
Canada’s oldest retailer, Hudson’s Bay, filed for bankruptcy protection in March. The reasons cited were a perfect storm of economic headwinds, changing shopping behavior after the pandemic and trade tensions with the US. The 354-year-old company confirmed plans to liquidate its remaining stores in April. The Canadian locations remained operational until June 15 at the latest. In a final chapter,[CanadianTireacquiredHudson’sBay’sintellectualpropertyfor$30million(https://fashionunited.de/nachrichten/business/geistiges-immobilien-von-hudsons-bay-fur-30-millionen-dollar-erwerbe/2025052061649).Thismeantthatthehistoricbrandnamewaspreservedevenifphysicaloperationswerediscontinued.
Saks Fifth Avenue’s parent company, Saks Global, is reportedly considering filing for Chapter 11 bankruptcy, a final measure amid growing financial strains. These include an upcoming interest payment of over 100 million US dollars (around 92 million euros) and weaker than expected sales, which are putting a strain on cash flow and liquidity. The company was formed from the merger of several luxury brands, including Saks Fifth Avenue and Neiman Marcus. It is struggling with high debt, integration problems and a struggling luxury sector that has dampened consumer demand. These pressures follow a broader pattern of financial difficulties. This is characterized by credit rating downgrades, problems with inventory and supplier payments, and the search for emergency financing and asset sales to strengthen the balance sheet.
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