How consolidations & collapses reshaped the US fashion industry in 2025

From JCPenney’s merger with SPARC Group to Versace and Stuart Weitzman changing ownership, Dockers, Hanesbrands, and Dickies finding new buyers, Forever 21 shifting to a digital-only model, and Saks Global nearing bankruptcy, 2025 marked a year of blockbuster acquisitions and bankruptcies across the US fashion industry. While successful, strategic players orchestrated deals that often exceeded one billion dollars, other struggling retailers were forced to shut down stores across the country. Underlying ongoing fundamental shifts in consumer behavior and retail business models, here we take a closer look at some of the biggest consolidations and collapses in US fashion in 2025, and where things sit now.

Blockbuster Acquisitions & Mergers: Strategic bets on scale & brand power

2025 saw numerous acquisitions, with some players expanding their portfolios through legacy brands and others consolidating their brands to form new groups, hoping to strengthen their position in US markets.

JCPenney merges with Sparc Group to form Catalyst Brands:

The year started with the news that JCPenney and Sparc Group merged to form a new organization, Catalyst Brands. The all-equity deal united JCPenney and SPARC Group into a six-brand retail portfolio, supported by shareholders including Simon Property Group, Brookfield Corporation, Authentic Brands Group, and Shein.

WHP Global finalized acquisition of Vera Wang:

In January, WHP Global finalized its acquisition of Vera Wang, with the legendary designer remaining onboard as founder, chief creative officer, and shareholder. WHP Global also signed a new licensing agreement with the Batra Group to launch an advanced contemporary Vera Wang ready-to-wear line across the UK and Europe.

Caleres acquired Stuart Weitzman from Tapestry Inc.:

Tapestry Inc. streamlined its portfolio this year by selling Stuart Weitzman to Caleres for 105 million dollars in cash. The deal was initially announced in February and closed this summer. The sale allowed Tapestry Inc. to focus on its core Coach and Kate Spade brands, which saw the New York-based company report all-time high share prices in August.

Authentic Brands acquires the Dockers brand & IP from Guess:

Authentic Brands Group continued its aggressive acquisition strategy this year, adding both Guess and Dockers to its sprawling portfolio. In May, Authentic Brands Group announced that it had entered a 311 million dollar deal to acquire Dockers from Levi Strauss, further diversifying its brand holdings across price points and categories. Then, in August, the company announced plans to acquire intellectual property rights of Guess for 1.4 billion dollars, securing a 51 percent stake in the company owning those rights.

Prada Group Acquires Versace:

The luxury fashion sector also saw a strategic acquisition this year. Prada signed a definitive agreement in April to acquire Versace from Capri Holdings for approximately 1.4 billion dollars. With the deal officially completing on December 2, the sale reflected a strategic fit for both Italian luxury houses, allowing Prada to expand its portfolio while Versace gained the resources and operational expertise of a larger parent company. 

Dick’s Sporting Goods acquires Foot Locker:

One of the significant deals of the year took place within the sportswear sector, with Dick’s Sporting Goods buying Foot Locker for 2.4 billion dollars. First announced in May, shareholders approved the deal in August, with the transaction closing in September. The combination creates a formidable athletic retail powerhouse, positioning Dick’s to dominate both specialty sporting goods and sneaker culture channels.

Gildan Activewear acquires Hanesbrands:

Gildan Activewear announced plans to acquire Hanesbrands in August in a deal that valued HanesBrands at approximately 4.4 billion dollars. Finalized in December, the move sees the two combine their iconic brands like Hanes, Playtex, Maidenform, and Gildan under one company, doubling its scale and focusing on integration for significant cost synergies.

3G Capital acquires Skechers:

Another milestone acquisition this year saw 3G Capital take Skechers private in a 9.4 billion dollar acquisition that closed on September 12. The deal, which received all necessary regulatory approvals represented a bold bet on the footwear brand’s international growth potential. While Skechers lacks the cult status of Nike or Adidas, the acquisition underscored investor confidence in brands with proven operational performance and consistent market share gains.

Dickies acquired by Bluestar Alliance:

VF Corporation announced plans to sell its famous workwear brands to Bluestar Alliance for 600 million dollars in cash in September. Closed in mid-November, the deal brings Dickies into Bluestar’s portfolio alongside Off-White and Palm Angels. Bluestar intends to expand the brand with new product lines, partnerships, and a broader global presence.

Bankruptcies: Closing chapters & cutting losses

Financial turbulence continued throughout 2025 for many fashion retailers and brands, pushing several established players to bow under pressure and, in some cases, close their doors. For some, it was the final curtain; for others, a chance to reinvent and emerge stronger; and for many, the path forward is still being charted.

Claire’s:

The global accessories retailer faced mounting financial strain in 2025, with its US, UK, and French operations all entering formal business protection while exploring potential buyers. Claire’s Holdings agreed to sell its North American business and intellectual property to an affiliate of private holding company Ames Watson as part of its Chapter 11 bankruptcy and restructuring proceedings in the US and Canada in August, pausing liquidation at many stores while the sale awaits court approval and aiming to preserve the brand’s retail footprint and long‑standing consumer appeal. 

Forever 21:

Perhaps the most symbolic bankruptcy came from Forever 21, which filed for Chapter 11 in March 2025, its second in six years after first struggling in 2019 and closing stores in select markets. Acquired by a consortium led by Authentic Brands Group, the retailer attempted a turnaround through partnerships with fast-fashion players like Shein and leadership changes, but was unable to stabilize. F21 OpCo announced plans to close all 350+ US stores in March, yet in September, Authentic Brands appointed new US partners to drive digital growth, wholesale expansion, and kidswear innovation: Unique Brands for e‑commerce and men’s wholesale, Mark Edwards Apparel for women’s wholesale, and Kidz Concepts for kidswear, strengthening the brand’s omnichannel presence.

Hudson’s Bay:

Canada’s oldest retailer Hudson’s Bay, filed for creditor protection in March, citing a perfect storm of economic headwinds, post-pandemic shopping shifts, and US trade tensions. The 354-year-old institution confirmed plans to liquidate its remaining stores in April, with Canadian locations operating until no later than June 15. In a final chapter, Canadian Tire acquired Hudson’s Bay’s intellectual property for 30 million dollars, preserving the historic brand name even as physical operations ceased. 

Saks Global:

The parent company of Saks Fifth Avenue, Saks Global, is reportedly considering a Chapter 11 bankruptcy filing as a last resort amid growing financial strain, including a looming 100 plus million dollar interest payment and weaker‑than‑expected sales that have strained cash flow and liquidity. The company, formed by the merger of several high‑end brands including Saks Fifth Avenue and Neiman Marcus, has grappled with heavy debt, integration issues, and a challenging luxury sector that has dampened consumer demand. These pressures follow a broader pattern of financial trouble, marked by credit rating downgrades, inventory and vendor payment issues, and the search for emergency funding and asset sales to shore up its balance sheet.