As of November 2019, nearly 9,000 textile retail stores down shutters in major markets across the US and Europe. The closures were 55 per cent higher than the previous year. MotherCare, the UK baby and maternity clothes retailer, has filed for bankruptcy and will close all its 79 shops in that country.

As many as 10 major brands, including Forever 21, Payless and Barney's, filed for bankruptcy between January and October. JC Penney, Gap, Sears and Victoria’s Secret are among major companies that have downsized. Zalando, the European e-commerce brand, is winding up sourcing from India after closing its private label segment zLabels. The company used to source garments annually from India—mainly from Bangalore and Tirupur—but has decided to end that.

One of the key reasons for brands to shut down is changing consumer trends and competition from e-commerce players. Some big retailers have opted for bankruptcy because they want to get out of leasing contracts. Most of these retailers have set up shops in locations which are taken for lease for long years. In the current market conditions they can't afford to pay such a hefty rent and can't cancel the lease, which will call for heavy compensation. Filing for bankruptcy gives a cushion for retailers to come out from this problem.