Forever 21 has closed all of its stores in the United States.
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The last store closed on May 1.
Forever 21 first filed for bankruptcy protection in 2019. The following year, it was acquired by a consortium of parties including Authentic Brands Group and mall owners Simon Property Group and Brookfield Property Partners. In early January, Forever 21’s parent company, Sparc Group, merged with JCPenney to form Catalyst Brands, a new entity that also includes brands like Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.
In 2023, Forever 21 teamed up with Chinese e-commerce player Shein. The partnership allowed Shein to carry Forever 21’s items on its platform. It also offered the opportunity to return Shein online orders at a couple hundred physical Forever 21 stores across the U.S.
Forever 21 joins a slew of other retailers that have filed for Chapter 11 or are liquidating in recent months as retailers face a slowdown in consumer spending and are navigating rising operating costs amid inflationary pressures. They include fabric and crafts retailer Joann Inc and Party City. In February, Outdoor apparel seller Liberated Brands, which has operated stores for surfer and skater-inspired labels like Quiksilver, Billabong and Volcom, filed for bankruptcy — and said it plans to shutter its locations across the U.S.
From Jan. 1 through March 14, U.S. retailers have so far announced 3,735 store closures, according to Coresight Research’s weekly tracker.
Forever 21 had been battling a host of macroeconomic challenges as well as its own issues.
Forever 21 was founded in 1984 and, along with other fast-fashion chains like H&M and Zara, rode a wave of popularity among young customers in the mid-1990s. Their popularity grew during the Great Recession, when shoppers were seeking bargains. But Forever 21 went on an aggressive expansion just as shoppers were moving more online. Critics have said that Forever 21 was too slow to embraice online shopping.
The company also faced stiff competition from the likes of Shein and Temu, which churn out trendy items that are cheaper than what Forever 21 offers. For example, Forever 21 sells T-shirts for around $10. Temu has them for $5.
At one point, Forever 21 operated more than 800 locations across the country.