In 2025, a line of companies with big names in the U.S. shocked the world by filing for bankruptcy. There were some of those companies that were household names and for some reason couldn’t keep afloat due to a number of financial troubles, changing markets, and changing behaviour of customers. Below we’ll go through the 10 biggest bankruptcies in simple terms telling you exactly what went wrong, how it affected these companies and what may happen next.
1. Burger King
Industry: Fast Food
Bankruptcy Type: Chapter 11
Filing Court: Florida
It is one of the first names that comes when we think of fast food: Burger King. Even this iconic chain couldn’t escape financial struggles in 2025, but. Burger King was competing against new fast food chains that were selling hamburgers a bit better, sales were declining, and labor costs were increasing. Not only was this, but more people were opting to eat from healthier alternatives, too. The company filed for Chapter 11 bankruptcy protection to give itself a chance to recover. It means that it will be able to restructure its debts, close some non-competitive stores, and look for ways to reduce its costs.
2. Joann Inc.
Industry: Retail (Craft and Fabric Supplies)
Bankruptcy Type: Chapter 11
Filing Court: Delaware
Fabric and craft supplies retailer Joann Inc. filed for bankruptcy after it had been unable to maintain sales. Joann had a temporary boost, as people were spending more time at home doing DIY projects. When real life resumed, sales plummeted. Joann couldn’t keep up with persistent online shopping combined with their high debt, and added to that, the shift to online shopping. Joann had to file for Chapter 11, which permits a business to reorganize itself and possibly restructure its debt in order to survive.
3. Purdue Pharma
Industry: Pharmaceuticals
Bankruptcy Type: Chapter 11
Filing Court: New York
The company that manufactured the very addictive painkiller OxyContin, Purdue Pharma, found itself ensnared in legal battles over the years over its role in the opioid crisis. The company’s bankruptcy was linked to ongoing lawsuits and paying settlements for the likes of the opioid epidemic led to the company’s bankruptcy in 2025. The company declared bankruptcy to restructure into a new environment as a public benefit corporation, which is supposed to emphasize public good above profit. An important part of that was Purdue’s filing for bankruptcy.
4. 23andMe Holding Co.
Industry: Biotechnology
Bankruptcy Type: Chapter 11
Filing Court: Missouri
It has so many challenges that the popular DNA testing company 23andMe filed for bankruptcy. People would come to the company because they want to know their ancestry; however, recently, the company has had a decline in demand for their services. There were also increasing concerns about privacy and the high cost of developing new products for the company. It also pushed majorly into the development of drugs, which financially did not pan out. All of this piled up and meant that 23andMe had no choice but to file for Chapter 11 bankruptcy to reorganize and hopefully find a way to profitability.
5. Nikola Corporation
Industry: Electric Vehicles
Bankruptcy Type: Chapter 11
Filing Court: Delaware
Electric trucks was the focus for Nikola at one time, but the company was once seen as one of the bright stars of the electric vehicle (EV) industry. However, after years of struggles in the purse strings, legal problems and finishing nowhere, Nikola could not last. The trucks had been delayed several times by the company, and it simply had no trouble raising funds. Then, add in the controversy surrounding its past leadership, and investor trust went down. As part of its efforts to develop electric trucks if the opportunity is available, the company filed for bankruptcy in 2025 in its Chapter 11 bankruptcy.
6. Hooters
Industry: Restaurants and Food Services
Bankruptcy Type: Chapter 11
Filing Court: Texas
In 2025, Hooters, the chain that made a name for itself for wings and prettiest waitresses wearing orange shorts, filed for bankruptcy. The image of the restaurant chain had become old and outdated, sales were declining. Lastly, over time, diners have slowly migrated towards newer, trendier dining options, and Hooters, it seemed, was just cannot adapt to the ever-changing times. To help reorganize, Hooters has filed for Chapter 11 bankruptcy, a vehicle that will enable the restaurant chain to shutter unprofitable restaurants and possibly change the raunchy image of the brand raunchy image in hopes of attracting new customers.
7. Forever 21
Industry: Retail (Fashion)
Bankruptcy Type: Chapter 11
Filing Court: Delaware
Famous for its trendiness and affordable garbs, fashion retailer Forever 21 opted to file for bankruptcy court again in 2025. It had already filed in 2019 and failed to recover. Forever 21 was still too weighed down, despite its efforts to streamline operations, with too much inventory, rising store costs that now often exhaust their bottom lines, and a need to conform to constantly changing fashion trends. The company is filing for a second bankruptcy to slim down the number of stores it operates and reduce its overall costs to remain in business.
8. Global Clean Energy Holdings
Industry: Energy and Utilities
Bankruptcy Type: Chapter 11
Filing Court: Texas
In 2025, Global Clean Energy Holdings, a company devoted to renewable fuels, ran aground in its own finances. The push for cleaner energy is stronger than ever, but the development of the plants Global Clean Energy has undertaken has been delayed and cost a fair bit. The company’s renewable fuel projects failed to make the promised profits, and it couldn’t compete with the competitive energy market. One possibility is that Global Clean Energy Holdings would go into Chapter 11 to reorganize, possibly sell assets, or restructure so that the business can be profitable.
9. Royal Paper
Industry: Manufacturing (Paper Products)
Bankruptcy Type: Chapter 11
Filing Court: Delaware
In 2025, Royal Paper (a major manufacturer of paper products) filed for bankruptcy, as demand for the paper products remained in decline. There has been a change in people switching to digital tools, where again, paper is not a necessity for offices and schools. At the same time, the expense of raw materials like wood pulp became too high for the company to be profitable. As part of the reorganizing and modernizing operation plan designed to suit the changing realities of the market, Royal Paper filed a bankruptcy.
10. Michigan Health Clinics
Industry: Healthcare
Bankruptcy Type: Chapter 11
Filing Court: Michigan
In 2025, Michigan Health Clinics – a network of medical centers – went bankrupt as it was unable to cover high operating costs and reduced reimbursements. The financial strain was compounded by staffing shortages, rising healthcare expenses and fewer patient visits. By using bankruptcy as an opportunity to restructure its debt and to keep getting healthcare services essential to it, the company is still trying to get back on track financially.
