Forever 21 has filed for bankruptcy for the second time in six years and asked permission to close more stores across the nation.
Forever 21’s brick-and-mortar locations, as well as their online store, will remain a while longer as the company winds down operations. Multiple states including Florida, Connecticut, Pennsylvania and California − where the company was headquartered − have already seen Forever 21 stores close down.
While Pensacola doesn’t have any Forever 21 stores, there are nearby locations in Panama City Beach, Tallahassee and Foley, Alabama, that will be included in the company’s shutdown.
The Tallahassee Democrat reported earlier this month that the lone Forever 21 in Tallahassee is closing down, but the Foley and Panama City Beach closures were announced alongside the company’s statement on filing for bankruptcy this week.
The fashion retailer cited rising costs, decreases in mall traffic and discretionary consumer spending as well as “competition from foreign fast fashion companies,” like Shein and Temu as some of the factors that led the company to file for bankruptcy.
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“While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends,” Brad Sell, chief financial officer of F21 OpCo, said in a news release.
F21 OpCo, the operator of Forever 21, announced the voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware on Sunday. The company said it will begin winding down its U.S. business while searching for a potential buyer for all of its remaining assets.
Forever 21’s U.S. Stores and website will remain open and online as operations shutter, according to F21 OpCo. To pay Forever 21’s employees, the operator said it filed motions with the court that will allow them to use cash collateral for wages and benefits.
“As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders,” Sell added.
The company is asking to close 355 locations, including all 23 in Florida, listing liabilities between $1 billion and $5 billion. The Forever 21 website currently lists storewide sales up to 80% off, online orders only.
Initially, Forever 21 announced in November 2024 that the company was closing 11 underperforming stores and then added seven more in December. The retailer’s locations outside of the United States are operated by other licensees and are not included in the Chapter 11 filings.
Forever 21 dodged Chapter 11 five years ago when mall owners Simon Property Group and Brookfield Corporation joined Authentic Brands Groups, a global brand development company, to buy the fashion retailer out of bankruptcy and save it from liquidation.
When is Forever 21 closing its stores?
According to the filing, sales will be finalized by April 30, 2025.
Which Forever 21 stores are closing in Florida?
- Altamonte Springs: Altamonte Mall, 451 E. Altamonte Drive, Suite 2113
- Boca Raton: Town Center at Boca Raton 6000 West Glades Road, Space #1166E
- Brandon: Brandon Town Center, 566 Brandon Town Center
- Clearwater: Countryside, 27001 U.S Highway 19 N., Suite 2030
- Doral: Miami International 1455 NW 107 Ave., Suite 560A
- Florida City: Florida Keys Outlet Market, 250 East Palm Drive
- Gainesville: The Oaks, 6419 Newberry Road, Space #B16
- Jensen Beach: Treasure Coast Square, 3080 NW Federal Highway
- Kissimmee: Osceola Crosslands 620 Center View Blvd.
- Miami Beach: 701 Lincoln Road
- Naples: Coastland, 1704 Tamiami Trail North, Ste A19
- Orlando:
- Florida Mall 8001 S. Orange Blossom Trail
- The Mall at Millenia 4200 Conroy Rd Ste #206
- Orlando Premium Outlets 8249 Vineland Ave., Unit 2201
- Prime Outlets Int’l 4951 International Drive, Suite #1C06
- Panama City Beach: Pier Park, 15575 Starfish St.
- Pembroke Pines: Pembroke Lakes Mall 11401 Pines Blvd. #576
- Sarasota: University Town Center, FL 140 University Town Center Drive Suite 215
- Sunrise: Sawgrass Mills 12801 W. Sunrise Blvd. Suite 555
- Tallahassee: Governor’s Square 1500 Apalachee Parkway, Suite 1210
- West Palm Beach:
- Palm Beach Outlets, 1795 Palm Beach Lakes Blvd. #W500
- Wellington Green 10300 W. Forest Hill Blvd., Suite 191
- Winter Garden: Winter Garden Village, 3049 Daniel Road, Unit 220C
Jonathan Limehouse, USA Today, contributed to this report.
