By May 1, all 354 Forever 21 stores in the U.S. had officially shut their doors, marking the end of an era for the once-popular fast-fashion retailer. The closures began in April, and by mid-month, the company stopped accepting gift cards and store credit. Refunds and exchanges were no longer processed, signaling the end of the brand’s physical retail presence in the U.S.
While its domestic stores are closing, Forever 21’s international locations remain open, and the company clarified in a statement that it would continue to fulfill online orders and honor gift cards and store credits until April 15, 2025. However, all sales are final, with no returns or exchanges allowed, and new gift cards or credit cards are no longer being issued.
The company’s bankruptcy filing attributed its decline to several factors, including fierce competition from international fast-fashion giants like Shein and Temu, rising operational costs, economic challenges, and shifting consumer preferences.
“The problem was, Shein and Temu became the fundamental leaders of fast fashion,” said Ilse Metchek, former president of the California Fashion Association, in an interview with the Los Angeles Times. “There was no way that the prices in Forever 21, given that they have to pay rent, would match the prices that were online.”
Metchek also pointed out that Forever 21 failed to adapt to the digital age, lacking significant investment in online advertising and influencer partnerships that could have connected them with young, social media-savvy shoppers.
Aiyana Veiga, CEO of My Unbounded Digital Marketing Agency, echoed these sentiments, noting on LinkedIn that Forever 21’s weak influencer marketing played a critical role in its downfall.
The rising inflation rates beginning in 2021 also contributed to the brand’s struggles, driving up operational costs like inventory, transportation, and employee wages. Stephen Coulombe, co-chief restructuring officer of F21 OpCo, highlighted in court documents that a “highly competitive retail environment” and a de minimis exemption for imports under $800 further impacted Forever 21’s ability to stay competitive.
In a humorous take on the retailer’s demise, Saturday Night Live aired a parody on May 4, dubbed “Forever 31,” which poked fun at millennial fashion trends. Hosted by Quinta Brunson, the sketch featured SNL cast members dressed in outfits that seemed more “art teacher in winter” than “mall brand influencer.” The exaggerated looks, complete with trench coats, oversized suits, and “mood-toned basics,” were a playful jab at the aging brand’s inability to keep pace with modern trends.
Forever 21, which became a staple for teenagers in the 1990s and 2000s, failed to recognize that its core customers increasingly preferred shopping online, especially as malls have slowly lost their appeal over the past decade. As the company’s troubles mounted, Forever 21 filed for Chapter 11 bankruptcy protection in 2019. It was temporarily saved when Authentic Brands Group, alongside Simon Property Group and Brookfield Corporation, acquired the company. However, Jamie Salter, CEO of Authentic Brands, admitted two years ago that purchasing Forever 21 was a financial mistake.
As of April 30, no buyer had emerged, and the closure of Forever 21’s U.S. operations looks increasingly final. Many readers may recall similar struggles for Topshop, which saw its downfall accelerated by the pandemic, forcing the brand to close many of its stores in the UK and leaving millions of shoppers embracing online retail.
The shift in shopping behavior, with consumers flocking to online platforms and connecting with brands through social media, highlights the importance of evolving with the times. Forever 21’s closure serves as a cautionary tale for other retailers from the same era, urging them to reflect on their ability to adapt to a rapidly changing consumer landscape.
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