Forever 21 Explores Second Bankruptcy as Up to 200 Store Closures Loom

The fast-fashion retailer faces financial struggles and increasing competition, with liquidation possible if no buyer emerges.

Forever 21 is reportedly preparing for a potential second bankruptcy filing, which could result in the closure of at least 200 U.S. stores or its entire chain of 350 locations.
The retailer is seeking a buyer to avoid liquidation, though no final decisions on the process or store closures have been made, according to statements from its operating company.
Forever 21 has struggled to compete with online retailers like Shein and Temu, despite a 2023 partnership with Shein to sell products through each other's platforms.
The company, which first filed for bankruptcy in 2019, has faced declining foot traffic, a weakened brand image, and financial pressures, including rent reductions at some locations.
Forever 21's brand and intellectual property are owned by Authentic Brands Group, which plans to continue licensing the brand regardless of the outcome of the U.S. operations.