Forever 21 to Close All U.S. Stores After Second Bankruptcy Filing

The fast-fashion retailer cites competition from international rivals, rising costs, and changing consumer habits as it winds down U.S. operations.

Forever 21 has filed for Chapter 11 bankruptcy for the second time in six years, planning to shut down all 354 U.S. stores by May 2025.
The retailer's U.S. website and stores remain operational temporarily as liquidation sales continue, while international locations remain unaffected.
Forever 21 attributes its financial struggles to competition from foreign fast-fashion companies like Shein and Temu, which benefit from the U.S. de minimis exemption, as well as rising costs and declining mall traffic.
Court filings estimate the company's liabilities between $1 billion and $10 billion, with assets valued between $100 million and $500 million.
The brand's intellectual property, owned by Authentic Brands Group, may continue under new operators, but the future of U.S. operations depends on finding a buyer for its assets.