If you’ve seen a 32 Degrees store close, stumbled across a headline about bankruptcy, or heard rumors that the brand is shutting down — you’re not alone. The confusion is real, and honestly, it’s understandable. There’s a lot of noise around this name, and not all of it is about the clothing brand you’re probably thinking of.
This article breaks down what’s confirmed, what’s speculation, and what’s simply a case of mistaken identity. By the end, you’ll have a clear, honest picture of where things actually stand.
First, Let’s Make Sure We’re Talking About the Same “32 Degrees”
This part matters a lot, so let’s get it out of the way early. When most people search “Is 32 Degrees going out of business,” they mean the apparel brand — the one selling affordable basics at 32degrees.com and through retailers like Costco, operated by David Peyser Sportswear.
But there are other businesses carrying the “32 Degrees” name, and they’ve been creating a lot of confusion.
A business called 32 Degrees, LLC — a restaurant entity based in North Salt Lake, Utah — filed for Chapter 11 bankruptcy in August 2026. Its DBA names include Santo Taco Express, and it’s categorized under “Restaurants and Other Eating Places.” This has absolutely nothing to do with the clothing brand.
There’s also a UK company called 32 DEGREES LIMITED, registered as a business support services firm in Beeston, Nottingham. It was dissolved in June 2023. Again — completely separate industry, completely separate country, completely unrelated to the apparel brand.
These name overlaps are a big reason why searches about “32 Degrees going out of business” spike, even when the clothing company hasn’t announced anything of the sort. If you read a headline about 32 Degrees filing for bankruptcy, dig into the details before assuming it’s the brand you shop from.
What the 32 Degrees Clothing Brand Is Actually Doing Right Now
As of mid-2026, the 32 Degrees apparel brand is still operating. The website, 32degrees.com, is live and actively selling products. You can browse their catalog, place orders, and reach their customer support team without any issues.
Business profiles show the company employs somewhere between 90 and 165 people, with an active corporate headquarters. That’s not a skeleton crew — it reflects a functioning business.
Here’s something worth noting: in 2023, the brand signed an office expansion deal in New York, leasing additional space at 1410 Broadway. That’s not something a company does when it’s preparing to shut down. Businesses that are winding up operations don’t usually sign new leases and expand their footprint.
As of now, there has been no official bankruptcy filing, no announced liquidation, and no confirmed restructuring plan for the 32 Degrees apparel brand. None.
Why People Think the Brand Might Be in Trouble
That said, the concerns aren’t coming from nowhere. There are a few real things happening that have fed the rumors, and it’s worth being honest about them.
Some Stores Have Closed
Individual 32 Degrees retail locations have closed in certain areas. A Reddit thread from Jersey City users confirmed that a local store shut down, complete with a clearance sale beforehand. Employees from nearby businesses confirmed it too.
Store closures feel alarming, especially when you see a clearance rack and empty shelves. But they’re common in retail — especially as brands shift toward online-first or wholesale-only models. One store closing doesn’t mean the whole brand is going under.
A Finance Article Put Them on a “Bankruptcy Risk” List
A 2026 article listed 32 Degrees among Costco clothing brands considered most likely to go bankrupt. The reasoning pointed to growing competition from Uniqlo, Athleta, and Amazon’s private labels, arguing that 32 Degrees’ value proposition — affordable essentials — has weakened as those competitors have moved into the same space.
It’s worth reading that kind of content carefully. These are analyst opinions and risk assessments. They reflect real competitive pressures, but they are not confirmed events. There’s a big difference between “this brand faces challenges” and “this brand is closing.”
Customer Reviews Are Not Great
On Sitejabber, the brand sits around 2 stars from over 100 reviews. Trustpilot shows a similar picture, around 2.1 stars. Complaints tend to focus on product quality, shipping times, and customer service.
Poor reviews matter. They can erode trust and hurt a brand’s long-term health. But a low star rating on its own doesn’t signal that a company is about to close. Plenty of struggling brands keep operating for years. Plenty of beloved ones have faced review dips and bounced back.
The Class Action Lawsuit and What It Means for Customers
In 2026, a class action complaint was filed against 32 Degrees — specifically against David Peyser Sportswear Inc. — alleging that the company sent misleading promotional emails to customers in Washington state. The claim is that the discount offers in those emails were fake, meaning the “original prices” used to show savings weren’t real prices the products were actually sold at.
This kind of lawsuit is called a consumer protection class action. It’s designed to hold companies accountable for deceptive marketing practices.
What does it actually mean for the brand? A few things are worth understanding here:
- If the lawsuit moves forward and succeeds, the company could face financial penalties or be required to change its marketing practices.
- It adds legal costs and public relations pressure on top of the competitive challenges the brand already faces.
- But lawsuits like this — even large class actions — do not automatically mean a company will shut down. Many businesses settle, adjust their practices, and keep operating.
It’s a legitimate concern, and it’s fair to factor it into how you think about the brand. Just don’t read it as a confirmed death sentence for the company.
How to Tell If a Brand Is Actually Going Out of Business
This is genuinely useful to know — not just for 32 Degrees, but for any brand you follow or shop from.
Here are the real signals to watch for:
- Multiple locations closing at the same time, not just one store in one city.
- The brand’s website goes dark or stops processing orders over an extended period.
- An official bankruptcy filing under the actual company name and industry — not a similarly named entity in a different state or country.
- Public announcements from the company itself about restructuring, liquidation, or closure.
- Repeated “going out of business” sales across many locations simultaneously.
On the flip side, be careful about reading too much into:
- Anonymous forum posts about a single store closing.
- Speculative “most likely to go bankrupt” lists from finance commentary sites.
- News about a completely different company that happens to share the same name.
If you want to do a quick check yourself, visit the brand’s official website and see if it’s live. Look at recent company news. Search for any official bankruptcy filings under the correct corporate name. Those three steps will tell you more than most headlines.
For broader coverage of how businesses navigate challenges like these, Upward Business Mag covers real business stories with the same kind of grounded, no-fluff approach.
So, Is 32 Degrees Going Out of Business?
Based on everything available right now — no, the 32 Degrees apparel brand does not appear to be going out of business.
The website is active. The company has employees and a corporate headquarters. They signed a new office lease in 2023. No official bankruptcy filing has been confirmed for the clothing brand.
What is true is that the brand faces real pressure. Competition has intensified. Customer satisfaction scores are low. A class action lawsuit is now part of the picture. Individual store locations have closed. And yes, financial commentators have flagged the brand as a potential risk.
Those things deserve honest attention. But honest attention means separating “this brand is under pressure” from “this brand is shutting down.” Right now, the evidence supports the first statement — not the second.
The only confirmed “32 Degrees” bankruptcy is a Utah restaurant LLC. The dissolved UK company with that name was a business services firm. Neither one is the clothing brand that sells you thermal layers and basics.
If that changes — if an official filing happens or a closure is announced — it will be worth paying attention to. But until then, the most accurate answer is: the brand is still operating, still selling, and facing challenges like a lot of mid-market apparel companies right now.
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