Forever 21 Faces Uncertain Future as US Bankruptcy Filing Signals Store Closures

Forever 21 is on the brink of potential closure in the United States, following the filing of bankruptcy protection by its operating company. Despite this move, the brand has assured customers that both its stores and online platforms in the US will remain operational during the winding down process. Once a beloved brand among young women globally, Forever 21 has struggled to maintain its relevance against rising costs and increased competition from online shopping and foreign fast-fashion retailers. Previously, the company filed for bankruptcy in 2019 but was later acquired by investors via a joint venture. CFO Brad Sell stated the brand has not been able to secure a sustainable future due to market challenges. As part of the new bankruptcy proceedings, there will be liquidation sales at physical stores, and assets may be sold in a court-supervised format. Interestingly, Forever 21’s international operations remain unaffected by this filing, as they are managed by separate license-holders. Founded in 1984 in Los Angeles by South Korean immigrants, Forever 21 gained massive popularity for its affordable, trendy clothing, rivaling major fast-fashion brands like Zara and H&M. The brand once boasted 800 stores worldwide, with half of them located in the US, peaking in 2016.