Forever 21 has filed for bankruptcy for the second time in six years, announcing plans to close all U.S. locations.
The company cited competition from foreign fast fashion companies like Shein and Temu, rising costs, economic challenges, and evolving consumer trends as reasons for the bankruptcy.
While stores will remain open for now, the company is starting an “orderly wind-down” process and looking for a buyer for some or all assets to cease, with the liquidation of 350+ locations.
Locations outside the U.S. are not affected by the bankruptcy filing, as other licensees operate them.