Bankrupt National Retailer Planning to Close All 354 US Stores

An iconic retailer that was the go-to destination for trendy clothing is officially on death’s door.

2025 is shaping up to be an even worse year for retail juggernauts. In the first month of the new year, chains like Macy’s and Nordstrom announced they were shuttering locations across the country.

The situation was even sadder for chains like Party City, JoAnne Fabrics, and Big Lots, who will all soon become figments of the past.

Now, another former retail titan is joining the growing list and is blaming fast fashion stores like Temu and Shein for its demise.

Barely a week after confirming it was closing 200 locations nationwide as it considered bankruptcy for the second time, Forever 21 says it is waving the white flag of defeat.

The once iconic clothing chain that dotted malls nationwide says it will “wind down” its operations within the United States unless a buyer acquires the company.

Chief Financial Officer Brad Sell announced in a statement the chain will begin “an orderly wind-down of operations” after being “unable to find a sustainable path forward, given competition from foreign fast fashion companies.”

Should an investor not come forward, all 354 remaining stores in the United States will close.

The chain is reportedly $1.6 billion in debt, while its assets are worth between $100 to $500 million.

Forever 21 first started in 1984 and exploded in popularity in the early 2000s when it began heavily marketing runway-like styles to young adults. However, with the rise of online shopping and changing consumer trends, the chain began seeing signs of trouble in the late 2010s and filed for bankruptcy for the first time in 2019.

The company was saved by Simon Property Group, Brookfield Property Partners, and Authentic Brands Group; the latter of which has a particular interest in acquiring struggling brands like Brooks Brothers.

However, the pandemic and skyrocketing inflation doomed the chain from recovery.

Authentic Brands’ CEO, Jamie Salter, said earlier this year that trying to save Forever 21 was “probably the biggest mistake I made.”

While Forever 21’s future in the United States looks murky, those who love the chain will still be able to visit one of its international locations. Locations and websites based outside the United States were not included in the bankruptcy filing.

More Chains Likely to Go Under in 2025

It seems like there’s a new retail chain that is either going out of business or drastically scaling back operations.

It’s no wonder the constantly updating list of store closures is losing its shock value. A report by Coresight Research estimated that 15,000 stores will permanently shut their doors by the end of this year, which is more than twice the number reported in 2024.

Last year, there were 7,325 store closures nationwide.