When Will Forever 21 Officially Close? Will Customers Still Be Able to Shop Online?

With the increasingly challenging economic times currently impacting U.S. residents and businesses at rapid rates, it’s expected that there will be many retail casualties along the way, and long-time mall staple Forever 21 is the latest retailer on the chopping block.

For the second time in almost six years, Forever 21 has filed for bankruptcy. However, unlike its previous financial challenges, the company’s most recent Chapter 11 filing is the official end of the road.

On Monday, March 17, Forever 21 confirmed what many had long feared, the company not only filed for bankruptcy, but all U.S. store locations will permanently close, according to NBC News.

There is currently no official date set for when all store locations will close (although many states have already shuttered locations) and the retailer’s website will go dark, but Forever 21 is currently in the process of “winding down” operations while hoping to find a buyer for remaining assets, per USA Today.

As the company’s retail stores are set to close down, customers of the brand have a bit more time to shop online.

As of March 18, Forever 21 is offering an 80 percent discount on all inventory site wide, meaning the online store will likely remain open until inventory is gone.

The large part of the reason that Forever 21 has reached the point of no return is due to the steep competition from international fast fashion brands, Shein and Temu. In a 2024 interview with Retail Dive, Jamie Salter, CEO of Authentic Brands, Forever 21’s brand and retail intellectual property owner, explained his “biggest mistake” in acquiring the brand.

“I didn’t see Shein and I didn’t see Temu,” Salter said of buying Forever 21, a decision that his board was against. “My partner, Mr. Simon said, ‘Why are you going partners with Shein? Like, you think that’s the right decision?’ I said, ‘David, it’s the right decision. We cannot beat them. Their supply chain is too good. They know what’s going on. They’ve figured this out. We need to partner with them.'"

“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, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends," Brad Sell, CFO of the company, said, per USA Today.

Currently, store locations in Connecticut, California, Washington state, Pennsylvania, Idaho, and North Dakota have all started the process of closing stores. Back in February, the company announced it would close its Los Angeles headquarters and layoff 358 employees, USA Today reported.

However, as more locations continue to close nationwide, the numbers of layoffs will significantly increase.

In a news release announcing the recent bankruptcy, Sell noted that Forever 21 plans to “work diligently to minimize the impact on our employees, customers, vendors and other stakeholders," per the outlet.