Iconic Mall Retailer Set to Close Hundreds of Stores Unless They Find a Last Minute Buyer

Forever 21 is preparing to file for bankruptcy again, with plans to shut down at least 200 stores if a buyer doesn’t emerge. The company’s future hangs in the balance as it struggles with financial losses and a shrinking retail footprint.

Key Facts:

Forever 21’s U.S. operator is expected to file for bankruptcy as early as next month.
At least 200 stores are set to close, and the entire 350-store chain could be liquidated if no buyer steps in.
The brand previously filed for bankruptcy in 2019 and was later acquired by Authentic Brands and mall operators.
Forever 21’s U.S. operations are now owned by Catalyst Brands, which is considering a sale or restructuring.
Authentic Brands will retain ownership of the Forever 21 trademark regardless of the bankruptcy outcome.

The Rest of The Story:

Once a dominant player in the fast-fashion industry, Forever 21 has been on a steady decline.

The company, which once operated over 800 stores worldwide, has struggled with profitability, particularly in an era where online shopping has overtaken traditional malls.

Its current operator, Catalyst Brands, is exploring a sale while also cutting costs and shutting down underperforming stores.

If no qualified buyer steps up, the remaining locations may be forced to close, marking another blow to brick-and-mortar retail.

Meanwhile, Authentic Brands, which owns the Forever 21 name, plans to license it to other retailers, ensuring the brand lives on in some form.

🚨🇺🇸FASHION RETAILER FOREVER 21 ON THE BRINK—COULD THIS BE THE END?

Forever 21 is scrambling to avoid a second bankruptcy, but with no buyer in sight, it’s now talking to liquidators—never a good sign.

Once a fast fashion empire, it’s been outpaced by Shein and Temu, while… pic.twitter.com/UBuLtSQ7jf

— Mario Nawfal (@MarioNawfal) February 19, 2025

Commentary:

Forever 21’s downfall is a result of two powerful forces: the inflationary squeeze on consumers and the decline of traditional malls.

Rising costs and economic uncertainty under Biden’s policies have left shoppers with less disposable income, making budget-conscious fashion chains like Forever 21 even more vulnerable.

Inflation has driven up wages, rent, and supply chain costs, but shoppers aren’t spending the way they used to.

The young consumers Forever 21 depends on are dealing with skyrocketing prices on essentials like food, gas, and rent.

Fast fashion loses its appeal when people can barely afford necessities.

At the same time, malls—once the backbone of Forever 21’s success—are increasingly obsolete.

Consumers have shifted to e-commerce, where they can find similar products at better prices without stepping foot in a store.

Forever 21’s reliance on large mall spaces has left it trapped in a failing business model.

This isn’t just a Forever 21 problem.

Traditional retailers that depend on foot traffic are struggling across the board.

Even legacy brands like Macy’s and JCPenney have been forced to downsize.

The shift is clear: brick-and-mortar stores that fail to adapt will disappear.

Forever 21’s brand might survive through licensing, but its days as a retail giant are likely over.

Without a major transformation, it will go the way of so many mall-based retailers before it.

The Bottom Line:

Forever 21’s financial woes highlight the struggles of traditional retailers in an era of rising costs and changing consumer habits.

With inflation pressuring shoppers and malls becoming relics of the past, the brand’s future in physical stores looks bleak.

If no buyer steps in, Forever 21’s retail presence may soon be a thing of the past.