Editor’s Note
- 10 large companies in the United States trapped in debt and on the brink of bankruptcy
- List of large companies in the US filing for bankruptcy
10 large companies in the United States trapped in debt and on the brink of bankruptcy
The beginning of 2026 was a challenging and stressful period for companies in the United States.
Increasing financial burdens, geopolitical instability, and changing consumer habits forced a number of large companies across various sectors—from retail and hospitality to logistics—to undergo restructuring or liquidation.
It is important to know that, under US bankruptcy law, there is a fundamental difference between a Chapter 11 and a Chapter 7 filing.
A Chapter 11 filing allows a company to continue operations while debts are restructured and business strategy is adjusted to become financially healthy again.
Chapter 7, on the other hand, is a full liquidation procedure, in which a company must cease all operations and sell remaining assets to satisfy creditors.
List of major US companies that have filed for bankruptcy
Below is an overview of 10 major US companies that filed for bankruptcy between January and February 2026:
To better understand the status of each company, here are the details of the bankruptcy filings:
1. STG Logistics, Inc.
This Ohio-based freight logistics company filed for bankruptcy protection under Chapter 11 on January 12, along with a number of subsidiaries. Management described this step as crucial amidst one of the worst recessions in the freight sector in history. The process aims to write off approximately 91% of the company’s debt and secure a new capital injection of US$ 150 million.
2. Stoli Group, USA
This global beverage brand filed an urgent petition on January 14 to change the bankruptcy status of two of its US subsidiaries, Stoli Group (USA) LLC and Kentucky Owl LLC. The status was changed from Chapter 11 (restructuring) to Chapter 7 (liquidation) after reorganization attempts were deemed unsuccessful. This step affects operations in the US only and has no impact on other international operations.
3. Saks Global
The parent company of Saks 5th Avenue, Saks Off 5th, and Neiman Marcus filed for bankruptcy in mid-January following a series of defaults. As a cost-saving measure, the company announced the closure of nearly all Saks Off 5th discount stores to reorient resources toward its line of full-price luxury brands.
4. Twin Hospitality Group Inc.
The parent company of the fast-casual restaurant chains Twin Peaks and Smokey Bones filed for bankruptcy (Chapter 11) on January 26, a few months after acquiring eight Twin Peaks franchise restaurants in Florida. The filing was made alongside 150 affiliates. The company also underwent a change of leadership in December 2025. 5. FAT Brands Inc.
The restaurant franchise giant, owner of brands such as Fatburger, Round Table Pizza, and Fazoli’s, filed for Chapter 11 bankruptcy on January 26. The company recorded a 2.3% year-on-year decline in revenue to US$ 140 million in the third quarter of 2025. In addition to financial problems, the company is also facing a federal investigation into alleged tax fraud and money laundering involving the CEO.
6. Pretium Packaging, L.L.C.
This manufacturer of sustainable packaging, founded in the 1990s, filed for bankruptcy on January 28 under a pre-packaged procedure. Pretium Packaging reached a restructuring agreement with creditors to reduce its debt burden by more than US$ 900 million and secure US$ 175 million in new liquidity to continue operations and product investments.
7. Sailormen Inc. One of the largest Popeyes franchisees, with more than 130 restaurants in Florida and Georgia, filed for bankruptcy in late January. High inflation and changes in consumer behavior following the pandemic are major factors putting pressure on the company’s debt structure, although current locations remain open.
8. Multi-Color Corporation
This global provider of labeling solutions with a history of over 100 years has filed for bankruptcy protection. MCC plans to drastically reduce net debt from US$ 5.9 billion to approximately US$ 2.0 billion and lower annual interest expenses to improve the company’s financial structure amidst industry challenges.
9. Francesca’s
This retail chain, which focuses on shopping centers, announced store closures and a clearance sale in January, followed by an official bankruptcy filing in February. The business model, which relies heavily on visitor numbers in shopping centers, proved to be a major challenge that the company was unable to overcome.
10. Catalyst Brands
The operator of the Eddie Bauer stores in the US filed for official bankruptcy in February due to persistently declining sales figures. The company is currently seeking a buyer to take over the business. If no agreement is reached, all Eddie Bauer stores in the US risk closing permanently. ***obs
