Forever 21 filed for bankruptcy in March 2025 and subsequently closed all its stores. The ecommerce website forever21.com remains online and functional.
Owner Authentic Brands Group had reported plans to reopen stores with a new partner, but the details of that plan haven’t materialized. Here is a timeline of Forever 21’s 2025 closure:
- Sept. 19, 2025. Authentic said it was close to securing a deal to reopen Forever 21 stores in the U.S.
- Sept. 18, 2025. Authentic announced new partnerships for Forever 21’s ecommerce and wholesale businesses.
- Aug. 29, 2025. Forever 21 announced it had secured an operating partner for China. Forever 21 has entered and exited China three times since 2008.
- May 30, 2025. After closing all stores, Forever 21 said it “isn’t going anywhere” on social media. No other details were provided on that post.
- March 17, 2025. AP reports Forever 21 had filed bankruptcy with plans to wind down operations. The company is still open to finding a buyer.
- Feb. 27, 2025. USA Today reports Forever 21 will lay off roughly 358 employees and close its Los Angeles headquarters.
- Feb. 19, 2025. According to Bloomberg, Forever 21 is frantically trying to find a buyer and planning to close 200 stores.
In an official statement, the company’s CFO Brad Sell 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. As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders.
A look at Forever 21
Forever 21 established its fame by selling affordable, trendy clothing in the 1980s. The chain quickly became a fast-fashion favorite among younger consumers. Through mall expansion and its online presence, the company grew into an international brand. Here’s a look at our coverage of Forever 21 over the years:
- How old is too old to shop Forever 21?
- How to shop Forever 21
- Gwen Stefani sues Forever 21
- Everything to know about the Forever 21 return policy
At its peak, Forever 21 operated more than 500 stores worldwide. But changing consumer preferences — the broad shift to online shopping — and stiff competition — from Temu and Shein — created issues for the chain. Financial struggles led to a 2019 bankruptcy and a rash of store closures. Today, there are about 350 Forever 21 stores still open.
What’s next for Forever 21
The company is working with a restructuring advisor to define a sustainable path forward. Lowering costs and closing unprofitable stores are key objectives, along with finding a buyer. The official line as of February 2025 was this quote obtained by USA Today:
Forever 21’s operating company, which is the brand licensee in the U.S., continues to explore strategic options, including a potential sale, while also reducing costs and optimizing its store footprint. The efforts are ongoing and no final decisions have been made regarding the outcome of the process or the number of stores that may be closed.
In late-February and early-March, reports of store closures in Pennsylvania, Connecticut, and California have surfaced. Official bankruptcy filing news hit the wires in mid-March. Subsequently, all stores were closed but the ecommerce website remains operational.
Sadly, we’ve seen this movie before. Remember what happened to Bed Bath & Beyond? After struggling for years, the brand was purchased out of bankruptcy by Overstock. Overstock rebranded itself as Bed Bath & Beyond, and the brand remains alive online today.
And then there’s the Lord & Taylor saga. Lord & Taylor, once a top-end department store, has been sold multiple times to buyers with grand intentions of reviving the brand. Today, the Lord & Taylor website is back online.
What went wrong
Forever 21 appears to be another retail victim of tough times. A global pandemic followed by an extended inflationary period have expedited the demise of mall traffic and the shift to online shopping. Meanwhile, overseas online retailers have mimicked Forever 21’s offering: huge selection, trendy clothes, and cheap prices. Those retailers can compete more effectively than Forever 21 because they don’t have the burden of 100s of physical store locations.
The history of Forever 21
The first Forever 21 store, originally named Fashion 21, was founded in 1984 by Korean immigrant/entrepreneur Do Won “Don” Chang in the community of Highland Park. Park’s goal was to sell Korean fashions stateside.
According to a 2010 Los Angeles Times article, Chang got the idea for a retail store after he noticed “…the people who drove the nicest cars were all in the garment business.” The store gained popularity and Chang expanded to other areas of Southern California.
While Chang’s interest was more economic than sartorial, he was unknowingly at the forefront of fast fashion, along with Halston, Jaclyn Smith, and Wal-Mart.
The Chang family expanded Forever 21 into a global retailer, retaining ownership until the company filed for bankruptcy in 2019.
The last time Forever 21 went bankrupt
The Chang family lost ownership of Forever 21 when the company filed for Chapter 11 bankruptcy protection in 2019. Then, analysts said Forever 21 had expanded too quickly, around the same time consumers turned away from mall shopping. Meanwhile, H&M and Zara did a better job getting new inventory into their stores and stole market share.
After the first bankruptcy, Forever 21 closed more than 100 stores in 2020. The brand was then rescued by a group of investors. Authentic Brands Group, Simon Property Group, and Brookfield Properties collectively paid $81 million for Forever 21’s assets.
The hope was that new leadership would help turn things around, but here we are once more.
A retail shift
Unfortunately, Forever 21’s troubles are not unique. JCPenney filed for bankruptcy in 2020, also announcing plans to close 200 stores. Later that year, the chain was bought by Simon Property Group and Brookfield Asset Management. Those names should sound familiar — they’re also involved in Forever 21. Simon Property Group owns and operates malls. Brookfield is an asset manager and property manager.
In 2025, JCPenney announced a “handful” of upcoming store closures.
Also in 2025, Kohl’s said it would close 27 stores. This is a small number compared to the chain’s total store count of 1,150. Ten of the planned closings are in California. Alabama, Arkansas, Colorado, Georgia, Idaho, Illinois, Massachusetts, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia will also say goodbye to at least one Kohl’s store.
Analysts largely agree on what’s happening with these big retailers: Physical stores are expensive, competition is tough, and more consumer are staying home to shop.