10 Major US Companies Set to Go Bankrupt in 2026, Trapped by Debt
Jakarta, CNBC Indonesia - The beginning of 2026 has been a period of intense pressure for businesses in the United States.
Peaking financial burdens, geopolitical instability, and shifts in consumer habits have forced several large companies across industries—from retail and restaurants to logistics—to pursue restructuring or liquidation paths.
As a note, under US bankruptcy law, there is a fundamental difference between Chapter 11 and Chapter 7 filings. A Chapter 11 filing allows a company to continue operating as usual while restructuring its debt and reorganising its business strategy to return to health.
In contrast, Chapter 7 is a full liquidation route where the company must cease all operations and sell remaining assets to settle obligations to creditors.
The following is a summary of 10 major US companies that have filed for bankruptcy from January to February 2026:
To understand the condition of each company in more detail, here is a breakdown of the bankruptcy filings:
- STG Logistics, Inc.
This Ohio-based logistics and freight delivery company filed for Chapter 11 protection on 12 January along with several affiliates. Management described this step as crucial amid one of the worst freight recessions in history. The process aims to eliminate about 91% of the company’s debt and provide a new capital injection of US$150 million.
- Stoli Group, USA
This global spirits brand filed an emergency petition on 14 January to convert 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 reorganisation efforts were deemed unsuccessful. This step only affects US operations and does not impact other international businesses.
- 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 debt defaults. As an efficiency measure, the company announced the closure of nearly all Saks Off 5th discount stores to refocus resources on its full-price luxury brand lines.
- Twin Hospitality Group Inc.
The parent operator of the Twin Peaks and Smokey Bones fast-casual restaurant brands filed for Chapter 11 on 26 January, several months after acquiring eight Twin Peaks franchise restaurants in Florida. The filing was made alongside 150 affiliated companies. Previously, the company also underwent a leadership change in December 2025.
- FAT Brands Inc.
This restaurant franchise giant, overseeing brands such as Fatburger, Round Table Pizza, and Fazoli’s, filed for Chapter 11 bankruptcy on 26 January. The company recorded a 2.3% year-on-year revenue decline to US$140 million in the third quarter of 2025. In addition to financial issues, the company is facing a federal investigation into alleged tax fraud and money laundering involving its CEO.
- Pretium Packaging, L.L.C.
This sustainable packaging manufacturer, founded in the 1990s, filed for a pre-packaged bankruptcy on 28 January. Pretium Packaging reached a restructuring agreement with creditors to cut its debt burden by more than US$900 million and secure new liquidity of US$175 million to maintain operations and product investments.
- Sailormen Inc.
One of the largest Popeyes franchise holders, managing over 130 restaurants in Florida and Georgia, filed for bankruptcy at the end of January. High inflation and post-pandemic changes in consumer shopping habits were the main factors burdening the company’s debt structure, although current store operations are still running.
- Multi-Color Corporation
This global labelling solutions provider with over 100 years of history pursued a pre-packaged bankruptcy protection route. MCC plans to drastically reduce its net debt from US$5.9 billion to about US$2.0 billion, as well as lower annual interest expenses to improve the company’s financial structure amid industry challenges.
- Francesca’s
This mall-focused retail chain announced store closures and liquidation sales in January, followed by an official bankruptcy filing in February. The company’s business model, heavily reliant on physical mall foot traffic, proved a major challenge that could not be overcome.
- Catalyst Brands
The manager of Eddie Bauer retail stores in the US officially filed for bankruptcy in February due to ongoing sales declines. The company is currently in the process of seeking a buyer to take over the business. If no deal is reached, all Eddie Bauer stores in the US risk permanent closure.