“Retail is changing, and like many brands, Forever 21 is adapted to build the right balance in stores, e-commerce and wholesale,” says Jarrod Weber.
Forever 21 files for bankruptcy again
The clothing retailer, once a centerpiece for malls across America, has filed for bankruptcy and plans to permanently close the rest of the location.
Scripps News
More than 350 Forever 21 stores are expected to close by by the beginning of May following the fast fashion company’s Chapter 11 bankruptcy filing in March.
Court documents obtained by USA Today are expected to close by May 1st. Many people started closing their doors as early as April 1st.
Forever 21 operator F21 OPCO previously said that if a buyer moves forward with interest in the brand, the store closure will be suspended. However, as of the afternoon of Wednesday April 30th, no potential buyers were shared by the company.
“Forever 21 is one of the most famous names in fast fashion. It’s a global brand rooted in the United States with a strong future,” Jarrod Weber, global president of the real brand lifestyle, told USA Today in March. “Retail is changing, and like many brands, Forever 21 is adapted to create the right balance in stores, e-commerce and wholesale.”
Neither Forever 21 nor F21 OPCO responded immediately when contacted by USA Today on Wednesday afternoon due to comments about the store’s closure.
Which Forever 21 stores are closed?
All 354 Forever 21 stores in the US are closed. However, notices to customers on the Forever 21 website say international stores will remain open.
Gift cards, store credits, and refunds are no longer accepted
Forever 21 accepted gift cards and kept their credits on April 15th. Refunds and exchanges are no longer available.
Why did 21 file for bankruptcy forever?
Forever 21 filed for bankruptcy with the U.S. Bankruptcy Court in the Delaware area on March 16 for “competition with foreign first fashion companies,” economic challenges, evolution of consumer trends, Brad Sell, Chief Financial Officer of F21 OPCO, the country said in a news release.
The historic rise in inflation, which began in 2021, has resulted in a significant increase in the operating costs of F21 OPCO, including Stephen Coulombe, co-elector reorganiser of F21 OPCO.
According to Coulombe, “a very competitive retail environment” is also hurting Forever 21 by exempting De Minimis from its exemption, exempting items under $800 from import operations and customs duties.
“Certain non-US online retailers competing with (F21 OPCOs) such as Temu and Shein have been using this exemption, allowing consumers to pass significant savings,” Coulombe said in a document. “As a result, retailers such as (F21 OPCO) who have to pay duties and duties to purchase products from US stores and warehouses are undercut.”
Gretacross is a national trend reporter for USA Today. Story ideas? Email her to gcross@usatoday.com.