One of the most iconic Fast Fashion chains requested bankruptcy in the US cornered by the fierce competition of foreign brands and the change of habit of its consumers.
The history of one of the most iconic brands of Fast Fashion in the United States He added a new chapter in his fall. Forever 21known for conquering entire generations with low prices and garments that followed international trends to the letter, appeared again in Bankruptcy in a court of delaware. It is the second time that the company is accepted to this resource in just six years.
The coup was not unexpected, since Brad Sellfinancial director of the company, admitted that they knew they had not been able to find a viable path to sustain the business. Among the factors listed is Feroz Foreign Competitionthe increase in costs, an adverse economic context for its main clientele and a market where trends change at an increasingly accelerated pace.
In 2019, Forever 21 had already resorted to Chapter 11 of the Bankruptcy Lawwhich resulted in the closure of 200 stores. Shortly after, a consortium made up of Simon Property Group, Brookfield Properties and Authentic Brands Group He bought the firm for 81 million dollars, keeping it standing but with a more limited commercial network.
Forever 21 – Banking
The Pandemia and the rise of electronic commerce They ended up accentuating the gap with competitors, who managed to settle hard in the US market.
Forever 21 It is not an isolated case. Last year, More than 7,300 stores closed in the United Statesan increase of 57% compared to 2023, according to consultant Coresht Research. Among the affected chains were giants such as Walgreens and CVS, which reflects a generalized adjustment in retail trade.
At the moment, The brand claims to have more than 540 branches Throughout the world and online presence, a figure well below the 800 that held when he declared his first bankruptcy. Some analysts estimate that their name It could be kept alive through licensesalthough in a much smaller format and away from the deployment that made it famous.
Forever 21 and a bankruptcy in which Shein and Temu have a lot to do
Some trade experts agree that the strong advance of platforms such as Shein and Temu He accelerated Forever 21’s collapse in his original market. These companies managed to enter their products to the US market taking advantage of the so -called Minimis regime, which allowed them Avoid tariffs or taxes on low value. That fiscal advantage – recently referred to by Donald Trump’s government – positioned them with much lower prices, making any attempt to compete to Forever 21 difficult.
To this is added that the firm had already crossed in 2019 a first bankruptcy, which together with the pandemic and the new purchase customs ended up drowning it: Less traffic in shopping mallsdemand that migrated to electronic commerce and a brand that lost identity against more agile models. Finally, in March 2025, Forever 21 declared bankruptcy again under Chapter 11 and announced massive settlements in the United States, about 350 branches, while its website was still operational at the moment.
Forever21-Argentina
Does Forever 21 continue to operate in Argentina?
In Argentina, the local operation continues despite the shipwreck in the United States. The brand here works under a master license, which is in the hands of a local operator, in charge of the development, marketing and production of the collections.
In the country it was only an open physical store, located in full microcentro, in Florida 834. But it is also still available to buy your products from your official website.
Source: Ambito
