Forever 21 Closed for Good in the US Following Chapter 11 Filing — Here’s What Shoppers Need To Know

Forever 21 has finally closed all of its doors in the U.S. for good, with the last of the iconic retail brand’s physical locations shuttering as of May 1. The closures were due to the recent Chapter 11 bankruptcy filing of the once-popular retailer. Here’s what shoppers need to know.

More Than 300 Forever 21 Locations Are Gone

According to USA Today, after Forever 21 filed for Chapter 11 bankruptcy in March, more than 350 U.S. locations were anticipated to be shut down by the beginning of May.

According to court records USA TODAY was able to access, by May 1, all 354 of Forever 21’s leased locations in the United States must close. Many started shutting down as early as April 1. The operator of Forever 21, F21 OpCo, had previously stated that shop closures would halt if a buyer expressed interest in the brand. However, as of Wednesday, April 30, in the afternoon, the business had not disclosed a possible buyer.

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While all domestic stores would be shuttering, a notice on the retailer’s website revealed that the international stores would remain open.

“Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the U.S. with a strong future ahead,” Jarrod Weber, global president for lifestyle at Authentic Brands, told the outlet. “Retail is changing, and like many brands, Forever 21 is adapting to create the right balance across stores, e-commerce and wholesale.”

As of April 15, the retailer stopped accepting refunds or exchanges, as well as gift cards as a form of payment.

According to a news release from Bradley Sell, the chief financial officer of F21 OpCo, the retailer filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on March 16 because of “competition from foreign fast fashion companies,” growing expenses, economic difficulties, and changing consumer patterns.

Speculation Abounded as to What Would Happen

Shortly before the iconic fashion store filed for bankruptcy, speculation abounded about its potential next steps.

The business had already declared its intention to close its Los Angeles headquarters and lay off around 360 employees.

The Los Angeles Daily News reported in late February that CFO Bradley Sell wrote to California’s Employment Development Department to inform them that layoffs would begin on April 21. Any remaining staff members would then work from home.

“This decision was not made lightly,” said a company spokesperson at the time, per USA Today. “And we remain committed to transparency and fair treatment of our employees during this period of transition.”

Forever 21 once operated more than 800 locations in the U.S., most of which were in malls. At the time of the Chapter 11 bankruptcy filing, however, its store portfolio had decreased to about 350 sites.

In the 1990s and 2000s, the brand became popular among teenagers looking for stylish clothing. However, it ignored that its core clientele preferred online shopping and quietly watched as malls started to disappear across the country over the past 10 years. Consequently, the company’s problems began to show.

Forever 21 filed for Chapter 11 protection in 2019 because it was in danger of going bankrupt. However, the fashion retailer was spared when brand licensing company Authentic Brands Group teamed up with real estate developers Simon Property Group and Brookfield Corporation.

The three companies bought Forever 21 to prevent the chain from closing. However, things did not go as planned. Jamie Salter, the CEO of Authentic Brands, acknowledged two years ago that purchasing the brand was a financial mistake, making it clear that plans for resurrecting the brand had stalled permanently.