Fast Fashion Takes Down High Street Giant Forever 21 Making The Conglamorate File For Bankruptcy

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FOREVER 21 has collapsed into bankruptcy for the second time in six years, leaving its US stores on the chopping block as online competition and dwindling mall foot traffic deliver a brutal blow.

The once-trendy fast-fashion retailer, famed for its affordable and stylish threads, is now preparing to shut down its operations in the States. The brand’s financial boss, Brad Sell, pointed the finger at foreign fast-fashion giants like Shein and Temu, accusing them of undercutting Forever 21 by dodging tariffs on cheap imports from China.

The US de minimis rule, which waives customs duties on items under $800, has allowed these retail titans to flood the market with dirt-cheap clothing—piling even more pressure on struggling high street names. Even Donald Trump’s recent tariff crackdown wasn’t enough to save the brand from collapse.

Founded in 1984 by South Korean immigrants, Forever 21 was once the go-to for trendy shoppers, boasting 800 stores worldwide at its peak in 2016. But as online shopping took over and America’s mega malls started to die out, the retailer couldn’t keep up.

Now, liquidation sales are on the horizon, with Forever 21’s US assets—valued between $100 million and $500 million—up for grabs in a desperate bid to salvage what’s left. Stores and the website will stay open for now, but with debts running up to a staggering $10 billion, the brand’s fate looks grim.

Forever 21 first went bust in 2019 before being snapped up by Sparc Group, a joint venture between Authentic Brands, Simon Property, and Brookfield Asset Management. But even that wasn’t enough to save it from the retail apocalypse.

The chain is now under Catalyst Brands, a merger of Sparc and JC Penney, which only formed in January. While Authentic Brands will keep hold of Forever 21’s trademark, CEO Jamie Salter recently admitted buying the retailer was “the biggest mistake I made.”

With liquidation looming, this could be Forever 21’s final curtain call—another high street casualty in the fast-changing world of fashion.

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