What We Know About Forever 21's Bankruptcy Filing
By keely aouga
Before Shein and Temu products were available at your fingertips, Forever 21 was one of the biggest names in fast fashion. However, the company recently announced that it's shutting down all U.S. locations.
Forever 21 Bankruptcy
This is the second time the company filed for bankruptcy in six years, this time citing, "competition from foreign fast fashion companies," rising costs and other economic challenges.
We've got a comprehensive breakdown of what's to come for the company going forward.
Forever 21 is owned by Catalyst Brands, which was formed on Jan. 8 through the merger of Sparc Group (the chain's previous owner) and JCPenny.
F21 OpCo, the operator of Forever 21, announced the voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware on Mar. 16, 2025.
Earlier in the year, the company shared plans to lay off about 358 employees and shut down its headquarters.
The parent company hopes to find a buyer for the business or part of its assets in a deal that could save the brand from permanently closing.
According to the retail store's operator, its website will remain online as operations shutter.
Similarly, ABC News reported that U.S. locations will stay open – for now, at least. People reported that closure is due to start on May 27 and finish on June 10.
Forever 21's Competitors
The CEO of Forever 21's competitor, Rue21, believes that Forever21's downfall highlights the importance of strategic adaptability as fast fashion brands like Shein take over.
Despite the confusion about the store's closure, Forever 21 stores outside the U.S. are expected to continue operating normally.