The UK's high streets faced a brutal year in 2025, with a raft of major retail and hospitality brands permanently closing their doors. The closures came amid sustained pressure on consumer finances, persistent inflation, and soaring operational costs for businesses, forcing many into restructuring or administration.
Major Retailers Restructure and Retreat
Poundland, despite its value-focused proposition, was not immune to the downturn. Sold for a symbolic £1 to investment firm Gordon Brothers, it launched a major restructuring plan. This began with the closure of 57 stores, threatening over 1,000 jobs. The chain is set to shutter more than 100 sites by early 2026, reducing 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 concentrate on travel locations. Modella plans to rebrand the chain as TGJones. As part of the sell-off, 20 stores were closed.
The fashion chain Quiz entered administration in February, closing 23 stores and affecting around 200 workers, despite a subsequent rescue by the founding family. Similarly, Select Fashion ceased trading entirely, closing all its roughly 80 stores after failing to find a buyer.
Hospitality and Specialist Retail Hit Hard
The hospitality sector suffered significant blows. In October, Pizza Hut confirmed 68 UK restaurants would close after its franchise operator entered administration, with 11 delivery sites also shut, putting 1,210 jobs at risk. American giant Yum! Brands later rescued 64 sites.
Leon announced plans in December to close around 20 of its worst-performing restaurants out of 71, following its buyback by co-founder John Vincent from Asda. Scottish brewer Brewdog shut 10 bars in July, including its original Aberdeen venue, risking almost 100 jobs.
Specialist retailers also struggled. Beauty chain Bodycare disappeared for good, shutting all 150 stores, while upmarket tile retailer Fired Earth closed its 20 showrooms in October, cutting 133 jobs. Arts and crafts retailer Hobbycraft, now owned by Modella Capital, revealed plans in April to close nine stores.
Fashion and Broader High Street Fallout
The fashion sector saw multiple casualties. The UK arm of Claire's tumbled into administration, leading to 145 store closures and 1,000 job losses, despite 156 shops being saved. H&M announced the closure of all seven UK stores under its Monki brand.
River Island shut 33 shops as part of a formal restructuring plan to avoid administration, also securing rent reductions on 71 others. New Look closed 15 UK stores and exited the Republic of Ireland entirely, shutting 26 shops there.
Elsewhere, home improvement chain Homebase shut 65 shops between January and March following a 2024 administration, with bosses citing a post-pandemic decline in DIY spending. Starbucks launched an overhaul, closing at least 10 UK coffee shops in October.
The collective retreat of these household names marks a profound transformation of the British high street, driven by a perfect storm of economic challenges that reshaped the landscape of UK retail and leisure in 2025.
