The company filed for bankruptcy on March 16, 2025, marking its second bankruptcy in six years.
This means all 354 Forever 21 stores across the United States will shut down soon. The news came out on March 17, 2025, and has surprised a lot of shoppers.
The company said it’s facing tough times. They blame fast-fashion brands like Shein and Temu, which sell trendy clothes online at very low prices.
These competitors use a special rule called the “de minimis” exemption, letting them ship items to the U.S. without paying extra taxes. This makes their clothes cheaper than Forever 21’s, hurting the store’s sales.
On top of that, inflation and higher costs have made it hard for Forever 21 to keep going. People are also shopping less at malls and more online, which has been a big problem for the brand.
Forever 21 is starting liquidation sales right away to sell off everything in its stores. These sales will happen while the company winds down its U.S. business.
The website will stay open for now, and gift cards can be used until April 15, 2025. The last stores are expected to close by May 1, 2025, though some might shut as early as May 27.
The company is still looking for someone to buy it or parts of it, which could save some stores at the last minute—but for now, the plan is to close them all.
The story of Forever 21 started in 1984 in Los Angeles, when Jin Sook Chang and Do Won Chang opened a small shop called Fashion 21. It grew fast, offering cheap, stylish clothes that teens and young adults loved.
At its biggest, it had over 800 stores worldwide and made $4 billion a year. But things changed. The first bankruptcy in 2019 forced it to close about 200 stores. Even after that, Forever 21 couldn’t keep up with online shopping trends and competition.
Shoppers are sad to see Forever 21 go. It was a fun place to find affordable fashion and a big part of mall trips for years. Now, its U.S. stores are saying goodbye, leaving behind memories for fans of the brand.
What’s Happening Now?
- Some U.S. stores are shutting down, but the company says it will keep open popular locations and focus on online sales.
- Employees at closing stores may lose their jobs, though the brand hasn’t shared exact numbers.
What Does This Mean for Shoppers?
- Sales: Closing stores may offer big discounts to sell leftover items.
- Online Shopping: Forever 21’s website and app will still sell clothes.
- Gift Cards: These can be used online or at open stores.
The Bigger Picture
Forever 21 isn’t the only store struggling. Many malls and fashion brands are closing shops as people buy more online. The brand is trying to adapt by teaming up with retailers like Walmart and expanding in places like India.
What’s Next?
Forever 21 says it’s “focusing on the future” but hasn’t shared long-term plans. For now, fans can keep buying its clothes online or at remaining stores.
While Forever 21 isn’t disappearing completely, its store closures remind us how shopping habits are changing—and how even big brands must evolve to survive.
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