Forever 21 is preparing to close all stores in the U.S. after filing for bankruptcy for the second time.
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The clothing giant announced the news on March 16th, claiming that many customers have switched to discount companies such as Temu and Shein. It also said that “rising costs” and “economic challenges” have impacted its “core customers.”
Forever 21 stores will begin closing all 350 of its stores beginning May 27th. The closures will finish on June 10th. Stores outside of the U.S. will remain open, according to PEOPLE.
“While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward,” said Chief Financial Officer Brad Sell. “… We will work diligently to minimize the impact on our employees, customers, vendors, and other stakeholders.”
Forever 21 Hopes To Reorganize In The Future
The company originally filed for bankruptcy in September 2019 when Simon Property Group and Brookfield Property Partners joined Authentic Brands Group to save the dying brand. It filed for the second time on February 19th, 2025. Originally, it had hoped to sell its storefronts once again, but it was unable to find a buyer.
Moving forward, Forever 21 hopes to reorganize and model itself after its overseas competitors.
“Forever 21’s U.S. business is said to be shifting toward a digital-first model, supported by a streamlined retail footprint focused on approximately 100 top-performing stores,” an insider told PEOPLE.
Before closing, the company hopes to liquidate its inventory.
This story’s featured image is by Vivid Brands via Shutterstock.
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