why are US companies going bankrupt 2026: US bankruptcies surge in 2026: Eddie Bauer, Saks Global, Fat Brands, Francesca and more are struggling – is corporate collapse coming?

US company bankruptcies 2026: The new year is starting off tough for large US companies. Last week, 9 major businesses filed for bankruptcy, pushing the three-week average to 6, the highest since the 2020 pandemic, as per a report.

Wave of Bankruptcies Hits Large US Companies in Early 2026

In total, at least 18 companies with $50 million or more in liabilities have gone under in the last three weeks, as per The Kobeissi Letter.

Wave of Bankruptcies Hits Large US Companies in Early 2026

Historically, only a few periods in recent decades have seen bankruptcy rates this high: the post-2001 recession, the 2008 financial crisis, and the 2020 pandemic. For context, the peak this century was a three-week average of 9 filings in 2009.
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Here’s a look at some of the largest companies already impacted in 2026.

Eddie Bauer Files for Bankruptcy Amid Declining Sales

The US operations of Eddie Bauer filed for bankruptcy in February, blaming declining sales, as per an AOL report. The company hopes to attract a buyer during the process; if that fails, all US stores could close.

Saks Global Shifts Focus to Luxury Brands, Closing Off 5th Stores

Saks Global, the parent of Saks Fifth Avenue, Saks Off 5th, and Neiman Marcus, filed for bankruptcy in mid-January, as per the AOL report. The company is closing almost all Saks Off 5th locations to focus on its full-price luxury brands. While many stores are already shuttered, some are still running clearance sales, offering shoppers a chance to grab discounted designer goods.Also read: Cloudflare stock (NET) surges on strong outlook – how AI agents are driving Cloudflare’s growth?

Fat Brands and Twin Hospitality: Restaurant Chains Face Financial Struggles

Fat Brands and related company Twin Hospitality, which run 17 restaurant chains including Fatburger, Round Table Pizza, Twin Peaks, Ponderosa, Johnny Rockets, and Fazoli’s, filed for bankruptcy at the end of January, as per the AOL report. Fat Brands has been under scrutiny for years, including a federal investigation into the CEO for tax fraud and money laundering. While the restaurants are still operating during bankruptcy, some may eventually close.

Sailormen Inc.: Major Popeyes Franchisee Cites Inflation and Changing Habits

A major Popeyes franchisee, Sailormen Inc., also filed for bankruptcy at the end of January. Operating over 130 restaurants in Florida and Georgia, the company cited inflation and post-pandemic changes in customer habits as key challenges. No closures have been announced yet.

Francesca’s Faces Bankruptcy as Mall Retail Continues to Decline

The women’s fashion chain Francesca’s started liquidation sales and store closures in January, then filed for bankruptcy in February. Court filings show that most of its sales still come from physical stores, a difficult reality for a retailer in a declining mall landscape. Customers can still find deals at closing stores.

FAQs

Why are so many large companies going bankrupt in early 2026?
Rising debt, inflation, changing customer habits, and post-pandemic challenges have put financial pressure on major companies.

Which industries are being hit the hardest?
Retail and restaurants are facing the largest wave of bankruptcies so far this year.