Forever 21 Files for Bankruptcy Again, Closing All U.S. Stores

Fashion retailer Forever 21 has filed for Chapter 11 bankruptcy again, announcing plans to close all of its 350 U.S. stores—including locations in Raleigh and Durham. The company, which has long defined youth fashion in malls across the country, blames foreign competition, rising costs, and shifting consumer trends for its downfall. As e-commerce giants like Amazon continue to dominate, traditional retailers struggle to stay afloat. Now, liquidation sales are underway in an attempt to offload inventory while the bankruptcy court seeks a buyer for Forever 21’s assets. CFO Brad Sell put it bluntly: “We have been unable to find a sustainable path forward, given competition from foreign fast-fashion companies… as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends.” Will any buyer step in to save what’s left of the once-iconic brand, or is this truly the end for Forever 21 in the U.S.?

Key Points:

• Forever 21 files for bankruptcy — Again! This marks its second Chapter 11 filing in six years.
• Closing all U.S. stores — 350 locations will shut down, including those at Crabtree Valley Mall in Raleigh and The Streets at Southpoint in Durham.
• Blaming foreign competition & higher costs — Fast-fashion brands from overseas, alongside U.S. tariff policies, have made it difficult for Forever 21 to compete.
• Liquidation sales underway — The company’s U.S. holding firm, F21 OpCo, is selling off inventory while the court searches for a buyer.
• International locations remain open — Stores outside the U.S. are operated by licensees and are not affected.
• Retail struggles continue — Big Lots also recently declared bankruptcy, though Variety Wholesalers stepped in to save a portion of its stores.

So, is this just another casualty of the retail apocalypse, or could someone swoop in to rescue Forever 21? If history tells us anything, fast fashion is ruthless—just ask Wet Seal, Charlotte Russe, or American Apparel. Stay tuned! 🎙️
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