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Various attempts to revive the business in the highly competitive fast-fashion sector didn’t work out.

Forever 21’s roughly 350 stores and online website in the U.S. will remain open and continue serving customers as the company begins to wind down operations, the company says.

Will Forever 21 stores close in Canada?

Forever 21’s locations outside of the United States are operated by other licensees and are not included in the Chapter 11 filings.

Authentic Brands Group continues to own the intellectual property associated with the Forever 21 brand and may license the brand to other operators.

Forever 21 locations outside the U.S. and its international e-commerce sites will continue operating normally.

In 2021, Forever 21 announced their return to Canada with physical stores after closing all locations as part of a bankruptcy filing in 2019, according to .

What led to the bankruptcy filing? 

Brad Sell, chief financial officer of F21 OpCo, blamed competition from foreign fast fashion companies, rising costs, economic challenges and evolving consumer trends as reasons behind the decision to file for bankruptcy.

“While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward,” he said. “As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders.”

Forever 21 say they were undercut by Temu and Shein

In , Stephen Coulombe, the operating company’s co-chief restructuring officer, said Forever 21 has been undercut by Chinese fast-fashion companies Temu and Shein.   

He said the business has been “materially and negatively impacted” by the ability for online retailers to take advantage of the “de minimis exemption,” which exempts goods valued under $800 from import duties and tariffs. 

Coulombe also cited a historic rise in inflation rates, beginning in 2021, which led to a significant increase in the cost of doing business for the company, including the cost of inventory, distribution, transportation and employee wages.

The before the United States Bankruptcy Judge for the District of Delaware Honorable Mary F. Walrath.