Forever 21 Could Soon Close Its Remaining 350 Stores as Second Bankruptcy Looms

Forever 21 is edging closer to shutting its doors for good. The struggling fast-fashion retailer, known for its $7 t-shirts and $12 dresses, is preparing to file for bankruptcy after failing to secure a buyer, Bloomberg reports.

With 350 locations left, Forever 21 is owned by licensing giant Authentic Brands Group (ABG), while its stores, e-commerce, and manufacturing are managed by F21 OpCo—a unit of Catalyst Brands, which also operates JCPenney, Aeropostale, and Eddie Bauer.

At its peak, Forever 21 had over 500 U.S. locations and 800 worldwide, but sources say it now plans to shutter all remaining stores as part of its bankruptcy filing. This would mark the retailer’s second bankruptcy in six years as it struggles against Chinese competitors like Shein and Temu.

In 2020, Forever 21 was purchased for $81 million by a consortium including Simon Property Group, Brookfield, and ABG, led by Jamie Salter. Despite the challenges, Salter remains hopeful, believing the brand can compete by hiring a new design team and speeding up production through new manufacturing deals overseas.

One potential plan could see about 100 stores remain open in high-traffic areas, though an industry insider warned that maintaining such a small number could be inefficient.

ABG has declined to comment on the situation. In 2023, Shein became part of the Forever 21 ownership group, adding another layer to the retailer’s ongoing transformation.