Forever 21 Nearing Bankruptcy, Faces Store Closures

Forever 21, known for its affordable fashion offerings, is on the brink of filing for bankruptcy as efforts to secure a buyer have faltered. The popular mall retailer, famous for its $7 t-shirts and $12 dresses, may soon be closing its 350 stores, according to Bloomberg.

Owned by licensing firm Authentic Brands Group and operated by F21 OpCo, Forever 21 has struggled to keep up with competitors like Temu and Shein. The company, which once had over 500 US locations and 800 worldwide, is now facing the possibility of complete closure.

In 2020, the retailer was acquired by a consortium of mall landlords, including Simon Property Group and Brookfield, for $81 million. Despite the challenges, Authentic Brands Group’s Jamie Salter is optimistic about the brand’s future and is exploring options to revamp the design team and manufacturing processes.

While discussions are ongoing about potentially keeping some stores open in high-traffic areas, the ultimate fate of Forever 21 remains uncertain. Shein’s involvement in the ownership group adds another layer of complexity to the situation.

With the fast-fashion landscape evolving rapidly, Forever 21’s struggle reflects the changing retail industry. As the company navigates these challenges, the future of the once-popular brand hangs in the balance.