Forever 21, Once a Fast-Fashion Darling, Files for Bankruptcy Again – What’s Next?

Forever 21 is closing its last two stores in Philadelphia, resulting in 36 layoffs. This closure follows the company’s latest bankruptcy filing, marking its second such occurrence. The challenges stem from shrinking mall traffic, inflation, and fierce competition, particularly from foreign fast-fashion brands that exploit tax exemptions to offer lower prices. Despite these closures, Forever 21’s U.S. online operations will continue for now as the company explores options, including liquidation sales, to restructure or sell its assets. Founded in 1984, the retailer struggled in an evolving market, leaving analysts uncertain about its future as competition grows. The brand’s international locations remain unaffected. Insights suggest a potential revival through strategic sales or licensing agreements could keep its legacy alive.