Forever 21 will close all its U.S. stores after announcing it will file for bankruptcy for a second time in less than a decade.
F21 OpCo, owner of the national clothing chain, announced Sunday that the brand planned to file for chapter 11 in U.S. Bankruptcy Court for the District of Delaware, according to a statement from the company.
F21 OpCo operates about 350 Forever 21 stores in the U.S., according to a report by Reuters.
In the statement, the company announced it will conduct liquidation sales at stores while selling off most of its assets. In the event of a successful sale, the company may pivot away from a “full wind down of operations to facilitate a going-concern transaction.”
Forever 21 stores and website will remain open in the U.S. during the liquidation, the statement said.
“While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends,” said Brad Sell, F21 OpCo CFO. “As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders.”
Forever 21’s locations outside of the U.S. are operated by other licensees and are not included in the chapter 11 filings, the company said.
Forever 21 locations in Delaware
Before the filing, the struggling fast-fashion chain already closed its store in Tanger Outlets Seaside in Rehoboth Beach last year. Five Below took its place.
Here are the remain Forever 21 stores in the First State:
- Dover Mall: 1365 N. Dupont Highway, Dover
- Christiana Mall: 162 Christiana Mall, Newark
Now open: Tanger Outlets in Rehoboth gained 10, lost 2 stores in the last year
What retailers are closing in 2025? Joann Fabrics, Party City among Delaware closures
Forever 21 explored ‘potential sale’ as stores closed
Forever 21’s operating company told USA TODAY in February it was exploring a potential sale of the chain, which came as the company looked to avoid bankruptcy.
Several Forever 21 locations across the country already announced plans to close their doors, including locations in Connecticut, California, Washington state, Pennsylvania, Idaho and North Dakota, according to local news outlets.
Forever 21 escaped Chapter 11 five years ago when mall owners Simon Property Group and Brookfield Corporation joined Authentic Brands Groups, a global brand development company, bought the fast fashion retailer out of bankruptcy and saved it from liquidation.
Shannon Marvel McNaught and the USA Today Network contributed to this story.
