Is Fingerhut Going Out of Business? Here’s the Truth in 2025

As the world of online shopping evolves, some legacy brands are struggling to stay afloat. One such name that has stirred concern is Fingerhut once a household name in the catalogue shopping industry. If you’re wondering, “Is Fingerhut going out of business in 2025?”, you’re not alone. The company has faced financial challenges, corporate restructuring, and stiff competition from modern fintech and BNPL platforms.

This blog explores everything you need to know from the brand’s financial situation to customer sentiment and the broader market it operates in.

What is Fingerhut?

Fingerhut is an American retail company best known for its unique “buy now, pay later” model. Established in 1948, the business initially started with automobile seat covers before evolving into a full-scale mail-order catalogue selling electronics, homewares, clothing, and more.

Fingerhut gained traction with lower-income households or those with limited credit access. By offering customers a proprietary credit account (often through WebBank), the brand allowed them to shop without needing a traditional credit card.

This alternative credit model made Fingerhut popular in the pre-digital era, especially among consumers looking for flexibility. Over the decades, it became a go-to for those who wanted small monthly instalments even if it meant higher overall prices.

Has Fingerhut Faced Financial Trouble Recently?

Yes, Fingerhut’s financial struggles can be traced back to its parent company, Bluestem Brands Inc., which filed for Chapter 11 bankruptcy in 2020. The bankruptcy followed years of declining profits, rising debts, and an inability to keep up with agile digital competitors.

While Fingerhut itself was not liquidated, it became part of the wider restructuring effort undertaken by Cerberus Capital Management, a private equity firm that acquired Bluestem’s assets. Under Cerberus’ ownership, Fingerhut continued to operate, but not without operational cutbacks, layoffs, and reduced product offerings.

Although these moves were aimed at stabilising the company, many consumers experienced service delays, unclear billing practices, and product limitations  fuelling speculation that the company might shut down.

Did Bluestem Brands’ Bankruptcy Affect Fingerhut Directly?

Absolutely. Although Fingerhut wasn’t named in the bankruptcy filing as an individual entity, its operations were tightly woven into Bluestem’s infrastructure. As a result, the impact was both immediate and visible.

Operational staff were downsized, which affected customer support and order fulfilment. Many customers reported receiving orders late or encountering issues with payments and returns.

Fingerhut’s credit services, issued by WebBank, also saw minor adjustments to approval criteria and account terms, though nothing confirmed a complete shutdown.

Still, the financial insecurity of its parent company made it harder for Fingerhut to compete with new-age BNPL platforms and eCommerce giants, adding further pressure on its legacy business model.

Is Fingerhut Still Accepting New Customers in 2025?

Yes, Fingerhut is still accepting new customers as of 2025. Users can apply for a Fingerhut Fetti Credit Account or a Fingerhut FreshStart Installment Program through their official website.

Once approved, customers gain access to a catalogue of household goods, electronics, and personal care items all available for purchase on monthly instalments.

However, the accessibility is mainly limited to the United States. Customers from the UK, including London-based consumers, might find the service unavailable or incompatible with local postal and credit systems.

Fingerhut has not actively expanded to international markets, which limits its relevance outside the US.

What Are Customers Saying About Fingerhut in 2025?

Customer sentiment around Fingerhut in 2025 is mixed, leaning more towards negative experiences. On platforms like Trustpilot, the retailer holds an average rating of 2.5 out of 5 stars. Reviews often highlight poor customer service, high interest rates, and misleading billing practices.

Online forums such as Reddit and complaint boards like Better Business Bureau (BBB) show that many customers feel frustrated by late shipments, trouble reaching support, and unclear account charges.

That said, some consumers remain loyal, especially those with long-standing accounts or limited alternatives for building credit. For this niche audience, Fingerhut still serves as a financial gateway albeit a costly one.

How Has the Buy Now, Pay Later Market Changed?

The BNPL market has undergone a major transformation in recent years. Gone are the days when catalogue shopping was the only flexible credit option. Fintech platforms like Klarna, Clearpay (Afterpay), PayPal Credit, and Laybuy now dominate the space, offering interest-free instalments, smoother digital interfaces, and better transparency.

These platforms are especially popular in the UK and Europe, making Fingerhut’s traditional, interest-heavy model look outdated. While Fingerhut charges high APRs (often 29.99% or more), competitors offer interest-free payments a major advantage for today’s price-conscious consumers.

Fingerhut has tried to modernise its web presence and checkout system, but it still trails behind when it comes to mobile apps, user experience, and fintech partnerships.

What Are the Alternatives to Fingerhut in the UK and Beyond?

If you’re based in the UK and looking for Fingerhut-like services, there are several modern and efficient alternatives.

Catalogue-Based Credit Retailers:

• Studio UK: Offers household items, fashion, and electronics on a pay-monthly basis.
• Freemans: One of the UK’s oldest catalogue stores with online ordering and flexible credit.
• Look Again: Specialises in fashion and home goods with flexible credit account options.

BNPL Providers and Digital Credit Options:

• Klarna: Widely accepted across major UK online retailers.
• Clearpay: Partnered with fashion and lifestyle brands for pay-in-four instalments.
• PayPal Credit: Enables monthly payments on any platform that accepts PayPal.

These platforms generally offer better user experiences, lower fees, and more accessible customer support.

Is There an Official Announcement About Fingerhut Shutting Down?

As of August 2025, there has been no official announcement from Fingerhut or Cerberus Capital regarding a company shutdown.

Despite operational challenges and financial pressures, Fingerhut continues to market its credit programs and accept new orders via its website.

While there have been rumours of a phase-out or merger, these remain unconfirmed. Analysts believe Fingerhut will continue operating in a more streamlined form, potentially shedding parts of its catalogue or further digitising its business.

In essence, Fingerhut isn’t shutting down but it is evolving in response to a market that is rapidly moving away from traditional catalogue models.

What Does the Future Hold for Fingerhut in 2025 and Beyond?

Looking ahead, the future of Fingerhut will likely depend on its ability to modernise and compete with agile BNPL platforms.

Digital retail trends favour zero-interest payments, mobile-first design, and transparent pricing all areas where Fingerhut currently lags behind. Unless it lowers its APRs, improves customer support, and revamps its technology, it may lose relevance altogether.

However, if it can successfully pivot perhaps by offering lower-risk credit products or partnering with fintech startups. it may continue to serve its niche.

Either way, its survival is no longer guaranteed by brand loyalty alone.

Fingerhut vs. Competitors in 2025

FAQs About Fingerhut’s Future

Is Fingerhut completely shutting down in 2025?

No. Fingerhut remains operational, though it has scaled back in several areas and is no longer expanding aggressively.

Can UK customers still shop at Fingerhut?

Fingerhut primarily serves US customers. UK users may find the service inaccessible or incompatible with local systems.

Why did Bluestem Brands file for bankruptcy?

The company struggled with debt, declining revenues, and a lack of innovation compared to newer digital competitors.

Is Fingerhut safe to use for credit purchases?

Yes, it is legal and regulated, but customers should be cautious of the high interest rates and ensure they understand the repayment terms.

Are there better alternatives to Fingerhut in the UK?

Yes. Klarna, Studio UK, and Freemans offer better credit terms and more modern shopping experiences.

What are the interest rates like at Fingerhut?

Rates often exceed 29.99% APR, which is much higher than many competitors.

Will Fingerhut eventually move to a digital-only model?

That’s possible. With catalogue shopping in decline, a digital pivot could be necessary for survival.