Laila Kirkpatrick, Staff Writer
Forever 21, a staple in fast fashion brands, filed for bankruptcy Sunday and announced plans to “wind down” its U.S. operations unless it can find another company to buy it out or buy some of its parts. The retailer has dealt with financial issues since 2019. It survived as a shell of its former prevalence with fewer stores nationwide, but the chain has not found a new buyer. This has prevented it from competing against other fast fashion brands that are online like Shein and Temu.
The Chief Financial Officer Brad Sell issued a statement saying, “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.” Sell then called out the tax loophole used by companies like Shein and Temu to ship clothes and accessories to U.S. shoppers. Forever 21 was initially founded by Korean immigrants as a long-run family business and became a large-scale operation by the early 2000s. After the company filed for bankruptcy initially, in 2019 the chain was purchased by mall operators Simon Property Group and Brookfield Property Partners teamed up with a firm called Authentic Brands Group, which buys dying brands like Brooks Brothers or Nine West. The company has said that it will keep stores and websites running while the future of the company is worked out.
