Nothing lasts forever, not even a company whose name includes the word. Forever 21, the once-booming retail company, has announced it will be shutting down all of its U.S. stores, including the ones in our area. Indeed, it’s an end of a millennial era. Read on to find out why this fashion staple is closing its doors for good
So long Forever 21
Founded in 1984 by Californian immigrants, Forever 21 became the fashion retail hotspot during the early to mid 2000s. The fast-fashion chain was a staple for many millennials looking for trendy looks on a budget. At the height of its popularity, the company estimated its net worth to be $5.9 billion.
But then all that changed.
In 2019, the company filed for bankruptcy for the first time. Soon after, the world was turned upside down to the COVID pandemic and many retailers were forced to shut down. Although post-COVID, malls reopened as did many brick and mortar retail locations. However, American consumers did not return back to in-person shopping.
With a decline in foot traffic, the company suffered immensely.
To make matters worse, Forever 21 could not keep up with other fast-fashion retailers.
In a statement Sunday, the operator of the brand’s U.S. unit sited foreign competition from fast-fashion rivals, rising costs, economic challenges and evolving consumer trends were to blame.
As a result, the company is preparing to file for bankruptcy a second time. Next it will close down all of its U.S. stores for good.
Brad Sell, the company’s chief financial officer, said in a statement:
“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,” said .
Philadelphia is home to two Forever 21 locations including one in the Fashion District and Franklin Mills. There are also locations in the surrounding region like Willow Grove, Montgomeryville, and King of Prussia. While the company has not specifically stated a closing date, it will begin liquidating all of its stores immediately.
Forever 21 will not be closing its stores outside of the United States.
Lastly, it will continue to operate online.