From Yahoo Finance: 2025-04-30 17:36:00

More than 350 Forever 21 stores are set to close by May following the Chapter 11 bankruptcy filing in March. Court documents revealed that all 354 leased U.S. stores will be closed by May 1, with closures beginning as early as April 1.

Despite hopes of a buyer halting store closures, Forever 21 and F21 OpCo have not shared a potential buyer as of April 30. The fast fashion company’s operator previously stated that buyer interest could pause closures, but no buyer has been announced.

Forever 21’s closure of all U.S. stores is a result of bankruptcy filing due to competition, rising costs, and consumer trends. The increase in inflation rates in 2021 raised operational costs, impacting the company’s ability to compete in a highly competitive retail environment.

Non-U.S. online retailers taking advantage of import duty exemptions have put pressure on Forever 21. Competitors like Temu and Shein passing savings onto consumers have undercut U.S. retailers like Forever 21, leading to increased challenges in the retail landscape.

Forever 21 has ceased acceptance of gift cards and store credit as of April 15, and refunds and exchanges are no longer available. The company filed for bankruptcy in March due to competition from foreign fast fashion companies, rising costs, and evolving consumer trends.

International Forever 21 stores will continue operating despite the closure of all U.S. stores. Customers were advised of the closures on the Forever 21 website, and the company stopped accepting gift cards and store credit on April 15, with refunds and exchanges no longer offered.

Greta Cross, a trending reporter at USA TODAY, covered the story about Forever 21’s closure. For further information or story ideas, readers can contact her via email at [email protected]. The article originally appeared on USA TODAY, providing insights into the reasons behind Forever 21’s decision to close all U.S. stores.

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