More than 350 Forever 21 stores are expected to be closed by the start of May, following the fast fashion company’s Chapter 11 bankruptcy filing in March.
All of Forever 21’s 354 leased stores in the U.S. are to close by May 1, court documents obtained by USA TODAY state. Many began closing their doors as early as April 1.
Forever 21’s operator, F21 OpCo, previously said that if a buyer were to come forward with interest in the brand, store closures would pause. But as of the afternoon of Wednesday, April 30, a potential buyer had not been shared by the company.
“Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the U.S. with a strong future ahead,” Jarrod Weber, global president for lifestyle at Authentic Brands, told USA TODAY in March. “Retail is changing, and like many brands, Forever 21 is adapting to create the right balance across stores, e-commerce and wholesale.”
Neither Forever 21 nor F21 OpCo immediately responded for comment about the store closures when contacted by USA TODAY on Wednesday afternoon.
All of Forever 21’s 354 stores in the U.S. are closing. However, a notice to customers on the Forever 21 website states that international stores will continue operating.
Forever 21 stopped accepting gift cards and store credit on April 15. Refunds and exchanges are also no longer available.
Forever 21 filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on March 16 due to “competition from foreign fast fashion companies,” rising costs, economic challenges and evolving consumer trends, Brad Sell, F21 OpCo chief financial officer, said in a news release.
The historic rise in inflation rates beginning in 2021 led to a significant increase in F21 OpCo’s cost of operations, including the cost of inventory, distribution, transportation and employee wages, Stephen Coulombe, co-chief restructuring officer of F21 OpCo, said in a court document supporting the bankruptcy filing.
A “highly competitive retail environment” is also hurting Forever 21, due to the de minimis exemption, which exempts goods valued under $800 from import duties and tariffs, according to Coulombe.
“Certain non-U.S. online retailers that compete with the (F21 OpCo), such as Temu and Shein, have taken advantage of this exemption and, therefore, have been able to pass significant savings onto consumers,” Coulombe said in the document. “Consequently, retailers that must pay duties and tariffs to purchase product for their stores and warehouses in the United States, such as the (F21 OpCo), have been undercut.”
Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@usatoday.com.
This article originally appeared on USA TODAY: Forever 21 shutters all US stores: Here’s what to know
