It’s the end of an era. Forever 21 stores are closing in the United States after the company that owns the retail brand filed for bankruptcy on Sunday, March 16. Going to actual stores at the mall is already a declining trend, and a mall with no Forever 21 means shopping IRL just got way less exciting. Here’s what to know about Forever 21 stores closing, and whether you’ll be able to catch a good Forever 21 sale before the store is officially gone.
In a press release from March 16, Forever 21’s chief financial officer Brad Sell said, “[Forever 21 has] been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to … undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends.” What does all of this mean? Online shopping has taken over with consumers, and fast fashion brands like Temu and SHEIN are able to mass produce and sell similar products to Forever 21 for a fraction of the price. These factors have hurt Forever 21’s bottom line, which was already in a fragile state — the company also filed for bankruptcy in 2019 and at the time, closed about 200 stores.
When Will Forever 21 Stores Close?
Don’t worry about speeding to the closest store near you — Forever 21 stores will still be open for the time being, and the online site will continue to operate for U.S. customers. But now that the company has filed for bankruptcy, Forever 21 will start an “orderly wind-down” of business in the United States. According to People, you may see Forever 21 stores close between May 27 and June 10. And if you’re not in the U.S., you’re good. Those locations are operated by a different licensee, according to the company’s press release, so they are not included in the bankruptcy filing and will stay open.
Will There Be Forever 21 Sales Before Stores Close?
Time to get out your credit card. According to the company, Forever 21 will conduct liquidation sales at its store locations ahead of closing. According to Reuters, the brand will also accept Forever 21 gift cards as a form of payment, but only for the first 30 days of bankruptcy. So if you want to use yours, you might want to act fast.
As the company prepares to shutter its doors, it will also consider selling the U.S. business to a buyer. This sort of sale happened in 2020 after the brand first filed for bankruptcy (it was bought by mall operators and a brand management firm for $81 million), so there is potential it could happen again. Only time will tell.