ºÚÁϳԹÏÍø

© 2025 ºÚÁϳԹÏÍø

FCC Public Inspection Files:
· · ·
· · · · ·
Public Files Contact · ATSC 3.0 FAQ
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Forever 21 is bankrupt, again. This time actually could be forever

People walk in front of a Forever 21 clothing store in New York.
Mark Lennihan
/
AP
People walk in front of a Forever 21 clothing store in New York.

Forever 21 is back on the auction block.

Once a formidable fast-fashion mall staple, Forever 21's parent company late Sunday. It plans to "wind down" its U.S. operations unless it can find a buyer for the whole business or some of its parts.

The retailer has been a shell of its former self since it first filed for . It survived then as a with fewer stores, but the chain has struggled to find life beyond the mall and to compete against fast-growing online rivals, including Shein and Temu that ship ultra-cheap goods from China.

"We have been unable to find a sustainable path forward, given competition from foreign fast fashion companies ... as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends," Chief Financial Officer Brad Sell .

Sell specifically called out a used by Shein and Temu to ship clothes and accessories straight to U.S. shoppers. That enables them to avoid paying the import duties that Forever 21 and other retailers must pay when they ship goods in bulk to warehouses first. The U.S. government is now .

Forever 21 — founded by Korean immigrants and long run as a family business — made it big in the early 2000s by making designer fashion accessible. It brought runway styles to mall shoppers at rock-bottom prices. Its store footprint grew fast and far, just as internet rivals began to eat its lunch.

After its 2019 bankruptcy, the chain was purchased by an unusual joint venture: Big mall operators Simon Property Group and Brookfield Property Partners teamed up with a firm called Authentic Brands Group, which such as Brooks Brothers or Nine West.

Authentic Brands' CEO later described his foray into once-fast-now-ultrafast fashion with Forever 21 as his "."

In 2023, Forever 21's new owners tried another maneuver, . But losses continued, worsened by the high inflation that had shoppers tightening their clothing budgets. Forever 21's liabilities are now ten times bigger than its assets.

The company says its stores and website will keep running while executives figure out the chain's future. Stores outside the U.S. are not part of the Chapter 11 filings.

Copyright 2025 NPR

Alina Selyukh is a business correspondent at NPR, where she follows the path of the retail and tech industries, tracking how America's biggest companies are influencing the way we spend our time, money, and energy.

Stand up for civility

This news story is funded in large part by ºÚÁϳԹÏÍø’s Members — listeners, viewers, and readers like you who value fact-based journalism and trustworthy information.

We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. As a community-supported public media service, ºÚÁϳԹÏÍø has relied on donor support for more than 50 years.

Your donation today will allow us to continue this work on your behalf. Give today at any amount and join the 50,000 members who are building a better—and more civil—ºÚÁϳԹÏÍø to live, work, and play.

Related Content