Farewell, Forever 21: Chain To Shut Down U.S. Operations

And another once-popular hot spot for fashion bites the dust.

Forever 21 plans to shut down all U.S. operations as the once-popular store for teen/young adult fashion files for bankruptcy for the second time.

As reported by NBC News, the store’s operator said Sunday that several factors resulted in its decline, including rising costs and foreign competition from fast-fashion rivals like SHEIN and Temu. For the time being, stores and the F21 website will stay open as the company starts winding down operations and continues to find a last-minute bidder for its assets.

Founded by Korean immigrants Jin Sook and Do Won “Don” Chang in 1984, Forever 21 grew to $1 billion in annual sales in 2005, becoming a mall staple for millennials. A decade later, sales peaked at more than $4 billion.

However, as the 2010s continued, the brand began to face stiff competition by online competitors, with affordable fast-fashion sites like SHEIN shipping their clothes to the U.S. from overseas.

Forever 21 first filed for bankruptcy in 2019, looking to become more efficient. However, the COVID-19 pandemic accelerated its downfall, even after it was bought out by retail operator Authentic Brands.

In a 2024 interview, Authentic Brands CEO Jamie Salter called the purchase “probably the biggest mistake I made.”

In this second bankruptcy filing, Forever 21 listed assets of between $100 million and $500 million and liabilities of $1 billion to $10 billion.

RELATED: Forever 21 Considering Second Bankruptcy Filing As Search For Buyer Continues

Farewell, Forever 21: Fashion Chain To Shut Down U.S. Operations  was originally published on ronehotspotatl2.staging.go.ione.nyc