Forever 21 to Close All U.S. Stores After Filing For Bankruptcy… Again
Trouble for Forever 21 shoppers comes again as the popular clothing store announces it will be closing its doors after filing for bankruptcy for a second time. On Sunday, the US operating company filed for bankruptcy for the second time in six years and it’s not looking too good.
Saying Goodbye to Forever 21
In a statement, Brad Sell, Chief Financial Officer of F21 OpCo said, “While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends. As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors, and other stakeholders.”
For years, Forever 21 was the introduction of fast fashion to many teens and young adults. But, as online shopping has emerged and grown tremendously over the last few years, the once popular retailer has been unable to keep up with online competitors like Shein, Temu, Fashion Nova, and more.
At the time of their first bankruptcy, Forever 21 had 800 locations worldwide, now their website reports that they have 540 locations globally and online.
The statement addresses their outside of the US locations as well. “Forever 21’s locations outside of the United States are operated by other licensees and are not included in the Chapter 11 filings,” reads the statement.
Moving forward, we will see what occurs in the fast fashion industry. For now, if you’re looking to grab a few last-minute pieces from the popular retailer before it closes its doors permanently.
Find your nearest Forever 21 location here.
