Forever 21 Closing Store Accelerated Competition from Shein and theme

Hundreds forever 21 American shops It will end by the end of March after the vast year of economic pressure and tireless competition in the fast fashion space.

F21 OPCO, Forever 21 store operator and brand license in the US, submitted bankruptcy defense for bankruptcy court in Delaware for the second time in six years on Sunday.

Forever 21, most likely close the rest of the shops with second bankruptcy

“We were unable to find a steady way forward, given the competition from foreign speed companies that were able to take advantage of de minimis’s release to prune our brand at prices and profitability, as well as cost growth, as well as cost increases, expenses, Economic problems The impact on our major customers and consumer trends are developing, ”the F21 OPCO Brad Sell said in a statement.

The company said that when it twists its operations in the US, it continues to look for the buyer for some or all its assets. Sarah Foss, Bankruptcy Prosecutor and Legal Head of Law in the debt WIRE, believes that “it is unlikely that a white knight will appear to acquire all or part of his retail places.”

Buyers go to the center of San Francisco when they use sales after Christmas on December 27, 2007 in San Francisco, California. (David Paul Morris / Getti Image / Getti Image)

According to the court documents, the closing process is already underway with the first wave of the worst Forever 21 locations, which are closed until March 30.

According to the court documents, the closure will affect approximately 236 stores, which will affect during the first wave of closure, as the company states that “it is unlikely that any third will be interested in acquiring these places in the framework of the transaction.” The rest of the stores are expected to close their doors forever before May 1.

In the US retail sales moderately bounced in February

FOSS emphasized how fast fashion trading network continued to face problems since its first trip through bankruptcy in September 2019, when the company closed more than 100 its 534 stores and the rest sold buyers.

Forever 21 Owners Authentic Brands Group and Simon Property Group set up a joint venture Sparc Group to keep the company live in 2019. In January, the Sparc Group united with JCPenney to create a new organization, Brands Catalyst.

The sign that advertises the sales of the Storewide is displayed in the Forever 21 window, which was prepared for the closing of February 2025 in San Francisco, California. (Justin Sullivan / Getti Image)

A fashion retailer joins the inexpensive party trading networks Party Party City and Sewing and Crafts Retailer Joann, which again fell on defense. Since the beginning of 2024, there were 20 sections of 11 sections, but 25 trade networks have had at least two bankruptcy applications.

“Brick retailers and solutions such as Forever 21 work in very competitive retailers, where the cost of business is expensive and increases with inflation level,” said Foss, adding that “the final nail in the coffin for inexpensive trading sellers like Forever Ultra inexpensive online stores Such as Shane and the topic that can take advantage of the release of De Minimis, which releases goods worth $ 800 from import duties and tariffs. ”

Shane and the topic offer a number of products and clothing at low prices. Companies are criticized for working practice, environmental problems and business ethics, such as impaired intellectual property.

Store forever 21 in New York, USA, Friday, February 7, 2025. (Yuki Iwamura / Bloomberg via Getty Images / Getty Images)

John Merriser, head of Global Research for Coresive Research study, also emphasized how competitive pressure from these fast fashion platforms that have grown up in recent years Inflation consumers In 2025, in 2025, their cheap prices will be used in 2025, and will still lead to the closure of retail.

The firm has estimated that there will be 15,000 closure this year. This year, the firm also predicted about 5,800 stores across the country, but leads to pure loss.

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However, Fos said it did not mean the end of the company.

The trademark and intellectual property of the company owned by the Authentic Brands Group branch is not bankrupt and will live in some form, Fos said.