The once-popular shop for fashion-conscious teenagers, Forever 21, is preparing to shut down all of its stores across the United States.
The brand is filing for bankruptcy a second time as it battles online rivals, NBC News reported on Monday.
“The operator of Forever 21’s U.S. unit said Sunday that foreign competition from fast-fashion rivals, rising costs, economic challenges and evolving consumer trends were to blame. For the time being, stores and the company’s U.S. website will remain open as the company starts winding down operations and seeks a last-minute bidder for its assets,” the outlet said.
Per Fox Business, F21 OpCo decided to file for bankruptcy after the retailer could not find a buyer for its U.S. stores. The outlet noted the shops, which are mostly located in shopping malls, have struggled due to more people buying online.
“Shopping malls, once bustling hubs of activity, face an uncertain future. Big brands like Target, Macy’s and JCPenney — often mall anchor stores — and smaller mall retailers face increasing challenges due to the relentless growth of e-commerce,” according to a 2024 article from Business.com.