It might be easy to believe that the largest companies in America are untouchable, but even the most popular brands can find themselves in financial hot water. As the economy changes, tariffs increase and customers behaviors shift, some companies, big or small, are struggling to keep pace. If you’re wondering which companies are currently on the brink, then here are nine widely-known U.S. businesses that are still operational but may find themselves in bankruptcy this year.
1. J.C. Penney
The iconic department store J.C. Penney is still in operation, but just this year, they’ve closed down 8 more locations, adding to the more than 200 that they have closed down since 2020. The company had in fact survived bankruptcy 5 years ago, but they are still struggling facing fierce competition with online and discount chains.
Despite all of this, J.C. Penney is moving forward and concentrating their efforts on e-commerce and improving customer experience to stabilize their future. Analysts say the company still faces many challenges, but their connection with Catalyst Brands and experienced management give them a better chance to turn things around.
2. Burger King
In the fast-food sector, the Burger King name is huge. Yet, in early 2025, one of their franchisees found themselves having to file for bankruptcy, unable to meet operational costs that were ever on the rise. Consolidated Burger Holdings, who owns more than 57 branches of Burger King, cited that they couldn’t keep up with the changes in consumer taste.
Burger King has seen multiple of their franchisees close for the past 5 years and are facing their own financial struggles. They are currently undergoing a rebranding and transferring franchisees to high-performing operators.
3. Rite Aid
Rite Aid, one of the leading drugstore chains in our country, has now run into economic problems and has filed for bankruptcy in May 2025. The pharmacy has declined in sales year after year and their inability to pay their debt seems to be the case. In addition to that, they are facing hard competition with other pharmacy giants like CVS and Walgreens.
Rite Aid’s prescription files have also been bought by other companies to continue serving the customers in areas their stores are closing. While they may have declared bankruptcy, Rite Aid is continuing to operate, stating that they have acquired new financing to keep their operation going.
4. At Home
The widely recognized home décor and furniture chain At Home is also undergoing difficulties financially this year as the retail sector continues to face struggles. The company hasn’t declared bankruptcy yet but analysts highlight their potential risk due to the current intense competition from both physical and online sales.
At Home seeks to stabilize their operations by restructuring their process. They’re planning on applying cost-cutting strategies and fully embracing e-commerce, as customers tend to order online these days. These strategies are aimed at keeping the company afloat, but uncertainty remains about their long-term financial health.
5. Kohl’s
Kohl’s, one of our country’s beloved department stores, is experiencing a decline in sales and while it’s still far off from bankruptcy, experts say that this decline could be alarming. The company has been dealing with problems such as customer shopping pattern changes and competition from discount and online stores, which seems to be a problematic pattern now to most department stores..
Despite Kohl’s rebranding to attract younger customers, they’ve shut down 27 unprofitable stores this year to cut costs. With their stock price under pressure and debt levels rising, analysts warn that unless Kohl’s can turn things around quickly, they could be the next major retailer to seek bankruptcy protection.
6. Macy’s
Department store chains really are struggling. Macy’s is also impacted by the ongoing sales decline and have raised concerns on their long term viability. Same as J.C.Pennys and Kohl’s, the decline is due to less foot traffic, online competition, and the shift in consumer behavior.
Even though they tried to rebrand the shops and enhance their digital presence, they couldn’t turn around the business. Macy’s is still operating but experts in the sector have pointed out that if the company doesn’t bring in major changes in sales and cost management, they could face bankruptcy soon.
7. Dollar General
Dollar General, the popular discount retail chain that has opened thousands of outlets in all the states, is finding it tough to remain financially stable in 2025 despite their large number of locations. The firm has been battling against the climbing production costs, interruptions in the supply chain, and a slowdown in the expansion of same-store sales.
Though Dollar General has been profiting from the consumers’ preference for the cheaper goods, fluctuations in the inflation rate and the increasing competition from not only discount stores but also e-commerce platforms have led to a decrease in their profit margins. They’re currently concentrating on cost-cutting and efficiency enhancement, however, experts caution that in case of the continuity of these difficulties, Dollar General may be at risk of bankruptcy in the forthcoming year.
8. Advanced Auto Parts
Advanced Auto Parts, a chain retailer for car parts, is closing more than 700 stores, which is largely a part of a turnaround plan which they have announced for this year. The company had to deal with the problems brought about by the rise of electric cars and the emergence of online parts retailers.
After closing less profitable stores, they want to focus on their best locations while expanding their online business. Advance Auto Parts aims to become more efficient in their operations in hopes for their long term growth.
9. Guitar Center
Guitar Center, the largest music instrument retailer in our county, might be playing their last tune yet. Their financial standing is still uncertain due to years of accumulating debt. Although the company managed to evade bankruptcy in prior years, they’re still susceptible to ongoing obstacles including the constant drop in store traffic, the stiff competition with online music retailers, and supply chain interruptions.
Guitar Center is planning on restructuring that aim to close the stores that are not performing well and increase the sales on their website. However, analysts note that only a substantial turnaround will prevent the Guitar Center from filing for bankruptcy within a short time.
Discover more trending stories and Follow us to keep inspiration flowing to your feed!
Craving more home and lifestyle inspiration? Hit Follow to keep the creativity flowing, and let us know your thoughts in the comments below!