Popular fast fashion clothing brand Forever 21 is holding liquidation sales after filing for bankruptcy and is set to close all 354 of its remaining stores in the US.
F21 OpCo, which runs the stores, announced that its American locations and website be ‘winding down’ amid Chapter 11 bankruptcy protection. It is its second bankruptcy filing in nearly six years.
The operator brand that started in 1984 attributed the decision in part to competition from online retailers like Shein, Temu and Amazon.
‘While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin,’ stated F21 OpCo’s chief financial officer Brad Sell.
‘On behalf of the Company, I’d like to express our deep appreciation for the hard work of our dedicated employees and their commitment to our customers.’
All Forever 21 stores are holding going-out-of-business sales to clear inventory.
The sales started in mid-February at 236 ‘Wave 1 locations’ which were the worst performing, and they are set to close the week of…
