The UK high street faced a brutal year in 2025, with a wave of major retail and hospitality brands shutting their doors for good. A combination of relentless pressure on household finances, stubborn inflation, and soaring business costs created a perfect storm, forcing numerous chains into restructuring or administration.
Value and Legacy Brands Hit Hard
Even discount retailers were not immune to the downturn. Poundland, despite its value proposition, was sold for just £1 and embarked on a major restructuring. This plan began with the closure of 57 stores, threatening over 1,000 jobs. Under new owner Gordon Brothers, the chain is set to shut more than 100 sites by early 2026, shrinking its estate from around 800 to between 650 and 700 shops.
In a historic shift, WH Smith vanished from the high street after 233 years. The group sold all its UK high street shops to private equity firm Modella Capital to focus on travel locations. Modella plans to rebrand the chain as TGJones, and as part of the sell-off, 20 stores were closed.
The casual dining sector suffered a significant blow when Pizza Hut confirmed the closure of 68 UK restaurants in October, after its franchise operator entered administration. A further 11 delivery sites shut, putting 1,210 jobs at risk. While Yum! Brands rescued 64 sites, the closures marked a major contraction for the chain.
Fashion, Home and Hospitality Casualties
The fashion sector was heavily impacted. The UK arm of accessories chain Claire's entered administration, leading to the closure of 145 shops and around 1,000 job losses, despite a rescue deal for 156 other stores. Quiz Clothing shut 23 stores after entering administration in February, affecting 200 workers.
Elsewhere, New Look closed 15 UK stores and exited the Republic of Ireland entirely, shutting 26 shops there. Select Fashion ceased trading, closing all its roughly 80 stores after failing to find a buyer.
In home and DIY, Homebase shut 65 shops between January and March following its 2024 administration, with bosses blaming a post-pandemic decline in consumer confidence. Upmarket tile retailer Fired Earth closed all 20 of its UK showrooms in October, cutting 133 jobs.
The hospitality scene also saw retreats. Fast-food chain Leon announced plans in December to close around 20 of its worst-performing restaurants. Brewdog shut 10 of its bars in July, including its first-ever venue in Aberdeen, putting nearly 100 jobs at risk. Starbucks also shuttered sites, closing 10 locations in October as part of an overhaul.
Further Significant Closures Across Sectors
Other notable disappearances from the high street included beauty retailer Bodycare, which shut all its roughly 150 stores, and arts and crafts chain Hobbycraft, which closed nine shops in April.
River Island implemented a formal restructuring plan, closing 33 shops to avoid collapse, while H&M announced the closure of all seven UK stores under its Monki brand at the start of the year.
The collective scale of these closures underscores the profound challenges facing physical retail. With consumer spending squeezed and operational costs high, the restructuring of the UK's high street landscape appears far from over.
