Torrid, the plus-size women's apparel retailer founded in 2001, grew to become a dominant name in its niche, reaching $1.29 billion in annual revenue by fiscal 2022. The company went public on the NYSE in July 2021 under the ticker CURV, riding a wave of investor enthusiasm for apparel brands with loyal customer bases.
By 2025, the business was under severe pressure. In Q3 2025, net sales fell 10.8% year over year with a net loss of $6.4 million. The company carried $35 million in annual interest and $17.5 million in amortization costs against a shrinking revenue base. Credit ratings agencies placed Torrid deep in junk territory — Moody's Caa1, S&P CCC+ — reflecting an unsustainable capital structure. Sales declines, merchandising missteps, and tariff pressures compounded the problem.
In June 2025, Torrid announced plans to close approximately 180 stores — roughly 30% of its fleet — as more than 60% of its sales had shifted online. By Q3 2025, 74 stores had already been shuttered. The retailer also brought lower price points to nearly a third of its assortment in an attempt to stem customer losses. Q4 2025 sales tumbled a further 14%. The closures continued into 2026 as the plus-size segment faced additional uncertainty from the impact of GLP-1 weight-loss drugs on apparel sizing trends.
Closed 180 stores, roughly 30% of the fleet, as over 60% of sales had shifted online, cutting the cost of a store network built for a pre-ecommerce era.
Torrid carried $35M annual interest and $17.5M amortization on a revenue base shrinking faster than debt could be serviced.
The shift of plus-size sales to online channels and competitors like Amazon and Target eroded Torrid's mall-based store traffic and revenue.
Merchandising missteps in assortment and pricing alienated core customers while tariff pressures raised costs.
A niche retailer with a loyal customer base can still fail when its store fleet was built for a pre-ecommerce era and its debt structure assumes sales that are already migrating online.
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