Key Takeaways: Total filings in 2025  increased but remain far below historical highs but Chapter 11 bankruptcy activity is expected to continue. in 2026.Beauty continues to outperform many consumer categories, it is not immune to structural pressure.The market has become far less forgiving and some brands are finding that time—and liquidity—runs out quickly.The past three years have been tough, with dozens of businesses cycling through bankruptcy courts, liquidating, restructuring, or exiting the market entirely. The BeautyMatter index tracked 22 brand failures in 2025 compared with 25 in 2024 and 28 in 2023. There are many more small businesses whose quiet closures were not captured. The sector’s attrition rate has remained stubbornly consistent.According to statistics released by the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 557,376 in the year ending September 2025, compared with 504,112 cases in the previous year. Business filings rose 5.6%, from 22,762 to 24,039, in the year ending September 30, 2025. Non-business bankruptcy filings increased 10.8% to 533,337, compared with 481,350 in the previous year.For more than a decade, total filings fell steadily, from a high of nearly 1.6 million in September 2010 to a low of 380,634 in June 2022. While total filings have increased, they remain far below historical highs. Chapter 11 bankruptcy activity is primed to continue into 2026, according to PWC. Higher input costs—driven by inflation and trade disruptions—and a K-shaped economy drove a measured uptick in restructuring last year, which will likely continue.