The harsh climate for retail continues to take its toll as yet another brand announces permanent closures. Forever 21 is folding—again. The once-iconic fast-fashion retailer filed for bankruptcy protection on Sunday. Once a booming business with more than 500 locations in the U.S. and 800 worldwide, Forever 21 has been struggling; this marks the second time in six years the brand has hit financial rock bottom.
Why is Forever 21 closing stores?
The company is blaming its downfall on foreign fast fashion companies like Shein and Temu. The retailer first filed for bankruptcy in 2019, but after emerging, it faced a brutal combination of COVID-19, record inflation and aggressive competition from those two Chinese companies. A key issue? The “de minimis” exemption, a trade loophole that lets international retailers ship low-cost goods to the U.S. duty-free, giving them a major edge.
Which Forever 21 stores are closing?
Forever 21 is liquidating inventory at its 350 remaining U.S. locations, preparing to shut down entirely. Court filings reveal the company is still open to bids, but unless a buyer steps in, it’s game over for its U.S. operations.
When is Forever 21 closing?
There is no hard date for closing all stores, but the company says its stores and website will remain open as it winds down operations.
Other major closures
U.S. store closures hit a high point last year, with chains like Walmart, Walgreens, Macy’s, GameStop, Kohl’s, Big Lots, Party City, Joann and 7 Eleven all announcing closures.