National fashion retailer files Chapter 11 bankruptcy, still open (for now)

The specialty retail apparel industry has faced headwinds over the last two years that have forced some of these companies to file for bankruptcy and close store locations.

Ailing retail chains have often suffered the same symptoms of rising labor and product costs driven by inflation, high brick-and-mortar lease rates that no longer make economic sense, rising interest rates on their debt, changing consumer attitudes, and in some cases, shrinkage from theft.

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In 2024 and 2025, high-end fashion retailers filed for bankruptcy protection to reorganize their businesses to continue operating.

Anne Fontaine USA, the U.S. affiliate of the Paris-based boutique chain, in January 2024 filed for Chapter 11 Subchapter V bankruptcy protection to reorganizd, asserting that the company had not been able to recover from financial distress caused by the Covid pandemic.

Conditions were even worse for luxury apparel chain Ted Baker Canada, which operated 31 Ted Baker stores in the U.S., nine in Canada, eight Brooks Brothers Canada shops, and seven Lucky Brand Canada stores, filed for restructuring under Canada's Companies' Creditors Arrangement Act and for Chapter 15 bankruptcy in the U.S. on April 24, 2024, to liquidate and close all 55 of its North American stores.

Ted Baker, however, continues to operate today through its e-commerce platform on its website, after the retailer's owner Authentic Brands Group in August 2024 reached an agreement with United Legwear & Apparel Co. to relaunch e-commerce retail operations in the U.S., Canada, the UK, and Europe.

High-end specialty apparel retailer filed bankruptcy

The parent company of high-end specialty retail chain Karma and Luck, which operates 12 brick-and-mortar high-end retail locations in Las Vegas, Los Angeles, Houston, Florida, and New York, filed for Chapter 11 bankruptcy on June 18, 2025, to restructure its debt.

Las Vegas-based company Zama & Zama Inc., whose retail chain sells spiritual and good fortune-themed merchandise for men and women, filed its petition in the U.S. Bankruptcy Court for the District of Nevada, and will likely seek to renegotiate leases in high-profile locations, such as the World Trade Center and Grand Central Terminal in New York, Houston Galleria, Fashion Show Mall in Las Vegas, and the Mall at Miami International.

Another more casual apparel retailer has faced financial difficulties that have forced it to file for bankruptcy.

Work ‘N Gear provides workwear for various occupations.

Image source: Shutterstock

Work ‘N Gear files for bankruptcy protection

Popular work apparel, footwear, and uniform retail chain Work ‘N Gear LLC has filed for Chapter 11 bankruptcy protection to restructure its debts and implement an automatic stay to prevent any legal action while its case proceeds.

The Lakewood, N.J.-based workwear retailer filed its petition in the U.S. Bankruptcy Court for the District of New Jersey on July 16, listing $1 million to $10 million in assets and liabilities in its petition.

More bankruptcy:

The debtor filed its petition after a creditor swept its bank accounts under its lending agreements, Law360 reported.

The debtor's largest creditors include major suppliers, such as Carhartt Inc., owed over $515,000; and The Timberland Company, owed over $226,000. It also owes over $257,000 to supply chain company Strategic Distribution Inc.

Work ‘N Gear, which was founded over 20 years ago, operates 35 retail stores in 11 states in the Northeast and Midwest. The company also sells its products through its e-commerce platform on its website.

The company sells products under top workwear brands, including Carhartt, Dickies, Timberland, Wolverine, Volcom, Helly Hansen, Cherokee, Chippewa, and many more.

The retail chain offers health care scrubs, footwear, and accessories; restaurant apparel and footwear; bibs, overalls, coveralls, coats, jackets, boots, and rain gear.