Forever 21 is closing its operations in the USA: what’s next for the brand?
18 march 2025 в 04:28
On Sunday, March 16, F21 OpCo’s Chief Financial Officer Brad Sell stated in a press release: «While we have explored all options to better position the company for the future, we have been unable to find a sustainable path forward, given the competition from foreign fast fashion companies that have been able to take advantage of the de minimis exception to lower prices and margins of our brand, as well as rising costs, economic issues affecting our core customers, and changing consumer trends».
The operating company currently has a debt of $ 1.58 billion and owes over $ 100 million to numerous clothing manufacturers, mainly in China and Korea.
Forever 21 was founded in 1984 in Los Angeles by Korean immigrants. Before facing fierce competition from fast-growing online fast fashion retailers such as Shein and Temu, it was a popular destination for young shoppers looking for stylish yet affordable clothing. At its peak, the company had 43,000 employees and generated over $ 4 billion in annual sales.
The company announced that it will begin liquidating its operations in the US while seeking a potential buyer for its remaining assets. According to local reports, Forever 21 has started closing stores in several states, including Connecticut, California, Washington, Pennsylvania, Idaho, and North Dakota. Last month, the company announced plans to lay off around 358 employees and close its headquarters in Los Angeles, California.
While the American business prepares for liquidation, the Forever 21 brand will continue to exist under the management of Authentic Brands Group.
Jarrod Weber, Global President of Lifestyle at Authentic Brands, stated on March 17: «Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the US with a bright future ahead. Retail is changing, and like many brands, Forever 21 is adapting to create the right balance between stores, e-commerce, and wholesale».
Weber further explained that the restructuring of the American operations will not affect the intellectual property or international business of Forever 21. He sees this move as an opportunity to modernize the brand’s distribution model, making it more competitive in the fast fashion industry in the long term
The operating company currently has a debt of $ 1.58 billion and owes over $ 100 million to numerous clothing manufacturers, mainly in China and Korea.
Forever 21 was founded in 1984 in Los Angeles by Korean immigrants. Before facing fierce competition from fast-growing online fast fashion retailers such as Shein and Temu, it was a popular destination for young shoppers looking for stylish yet affordable clothing. At its peak, the company had 43,000 employees and generated over $ 4 billion in annual sales.
The company announced that it will begin liquidating its operations in the US while seeking a potential buyer for its remaining assets. According to local reports, Forever 21 has started closing stores in several states, including Connecticut, California, Washington, Pennsylvania, Idaho, and North Dakota. Last month, the company announced plans to lay off around 358 employees and close its headquarters in Los Angeles, California.
While the American business prepares for liquidation, the Forever 21 brand will continue to exist under the management of Authentic Brands Group.
Jarrod Weber, Global President of Lifestyle at Authentic Brands, stated on March 17: «Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the US with a bright future ahead. Retail is changing, and like many brands, Forever 21 is adapting to create the right balance between stores, e-commerce, and wholesale».
Weber further explained that the restructuring of the American operations will not affect the intellectual property or international business of Forever 21. He sees this move as an opportunity to modernize the brand’s distribution model, making it more competitive in the fast fashion industry in the long term
© Kolganov Andrey
