End of an era: Forever 21 to shutter all U.S. stores following bankruptcy 

The company, which boasts 354 stores and over 9,200 employees stateside, plans an “orderly wind-down” of its operations, with liquidation sales starting soon. This marks the second bankruptcy for the brand—termed a “Chapter 22” in restructuring circles—signaling the end of an era for a pioneer that shaped affordable, trend-driven clothing.

The decision follows years of struggle against fierce competition from Chinese e-commerce giants Shein and Temu, which exploit a tariff loophole on goods under $800 to undercut prices. Inflation, rising costs, and shifting consumer habits have further eroded Forever 21’s core customer base. “Non-U.S. retailers selling at drastically lower prices have crippled our ability to retain customers,” co-chief restructuring officer Stephen Coulombe noted in court filings. CFO Brad Sell echoed this, citing an “unsustainable path forward” amid economic pressures and evolving trends.

Founded in 1984, Forever 21 peaked with 43,000 employees and $4 billion in sales, its racks brimming with clothing, jewelry, and accessories. After its 2019 bankruptcy, a consortium including Simon Property Group and Authentic Brands bought it for $81 million, slashing its footprint from 800 global stores. Yet, the recovery faltered. Analyst Neil Saunders of GlobalData Retail criticized the brand’s “lackluster” offerings and lack of identity, noting its abandonment by younger shoppers.

This closure aligns with a brutal year for U.S. retail, with Coresight Research projecting 15,000 store shutterings in 2025—double the 7,325 from 2024. Party City, Kohl’s, Macy’s, and others are also liquidating. While Forever 21’s international assets and e-commerce may persist via licensing, its U.S. demise leaves malls quieter and a generation’s fashion staple a fading memory. A last-ditch sale could salvage parts of the business, but its glory days are over.