Fashion retailer Forever 21 has filed for bankruptcy and is preparing to shut down all store locations in the United States.
F21 OpCo LLC, the licensee of the brand in the U.S., announced that it will begin to shut down over 350 U.S. store locations by May 1 unless a buyer takes over operations. These locations employ over 9200 workers.
The approximately 290 store locations and website operations outside of the United States will remain in business as usual.
“We are deeply grateful for the support you have shown us over the years, but rising costs and increased competition from abroad have made our current business model unsustainable,” Brad Sell, chief financial officer of F21 OpCo, said in a statement posted to the Forever 21 website.
Forever 21 was founded in 1984 as a fast fashion brand. Its focus on trendy, affordable clothing attracted a growing number of customers, with revenue peaking in 2015.
In recent years, Chinese founded fast fashion companies, such as Shein and Temu, have threatened Forever 21’s sales with competitive prices and styles.
F21 OpCo previously filed for bankruptcy in 2019, forcing the company to shut down hundreds of store locations and lay off employees. Since then, challenges such as the COVID-19 pandemic and changing styles among young people have slowed sales significantly.
Madi French, a BYU student, said she shopped at Forever 21 a few times, but never considered it a unique option for her or other young adults.
“I think there’s other stores that are similar enough to it that it’s not something people dwelt on too much,” French said.
Forever 21’s second bankruptcy is more permanent than the first, and most locations are expected to close before April 1. All operations expected to be shut down by the end of April.
The store located at University Place Mall in Orem will be closing for the final time on March 28, a store representative said. Dozens of other locations will shut down this same day.
Currently, the Forever 21 Orem location is advertising sales up to 70 percent off on all remaining inventory, and all sales are final.