On May 1, Fast-fashion retail store, Forever 21, closes down in the U.S. indefinitely.
The operator of Forever 21’s U.S. stores, F21 OpCo, reports roughly all 350 U.S. locations will be permanently closed after entering bankruptcy for the second time in six years. According to Fashion Dive, “Forever 21 blames latest bankruptcy on competition from Temu, Shein.”
Financial challenges continued to expand after the Covid-19 pandemic. According to court records, all stores should permanently close sales by May 1. Most items were listed as 70% off in all locations.
The closure has caused thousands of employees nationwide to be laid off.
While U.S. operations are ceasing, Forever 21’s international stores and online presence will continue under the ownership of Authentic Brands Group. The company aims to focus on an online strategy to better compete with online fast-fashion retailers.
The closure of Forever 21 stores presents an unexpected opportunity for mall owners. With the retailer exiting, landlords are optimistic about bringing in stronger tenants that can pay higher rents and attract more shoppers. According to the Wall Street Journal, “The Surprising Good News for Mall Owners: Forever 21’s Bankruptcy,” the mall industry is currently thriving, with high-end malls nearing full occupancy and rising rents.
End of an Era
As Forever 21 stores come to a close, many customers and former employees reflect on the retailer’s impact on their lives. The store was a staple for budget-conscious shoppers seeking fashionable clothing. Its departure marks the end of an era in the American retail landscape.
Highly influential fashion magazines like Vogue and Elle are talking about the closure of the brand and the memories that come with it. According to Vogue’s recent article, “Forever 21 Might Be Closing Its Stores, But the Memories We Built There Will Live on…Forever,” a consumer states, “When Forever 21 introduced men’s pieces in my college years, they fast became my go-to for going-out tops.”
Forever 21 will be truly missed by shoppers all around the U.S. and in the fashion industry.
