- Popular fast-fashion retailer Forever 21 has filed for bankruptcy and will begin liquidation sales at U.S. stores.
- The company cites competition from other fast-fashion companies as well as rising costs as reasons behind store closures.
Following a second bankruptcy filing in under a decade, Forever 21 announced it will close all United States stores due to competition from other fast-fashion companies and economic challenges.
F21 OpCo, operator of Forever 21 stores, announced Sunday the company planned to file for chapter 11 in U.S. Bankruptcy Court for the District of Delaware, according to a statement.
The fast-fashion retailer announced it will conduct liquidation sales at its U.S. stores while simultaneously conducting a court‑supervised sale and marketing process for some or all of its assets.
Forever 21’s website and U.S. stores will remain open as the company begins its process of closing stores, read the statement.
“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,” said CFO of F21 OpCo, Brad Sell.
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“As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders.”
The company has filed customary motions with the court, including seeking approval of the consensual use of cash collateral to pay employees and to continue business operations during the Chapter 11 process. Forever 21’s locations outside of the U.S. will not included in the chapter 11 filings.
“On behalf of the company, I’d like to express our deep appreciation for the hard work of our dedicated employees and their commitment to our customers,” added Sell. “We are also grateful for the many years of support from our partners and our loyal customers, who have allowed us to serve as a fashion industry leader and go-to retailer for generations.”
How many Forever 21 stores are located in Tennessee? When will they close?
Forever 21 did not disclose a specific timeline of store closures. The Tennessean reached out to Forever 21 and will provide updates once more information is made available.
Tennessee has a total of six Forever 21 stores which can be located at:
- Nashville – 504 Opry Mills Drive
- Murfreesboro – 2615 Medical Center Parkway
- Franklin – 1800 Galleria Blvd.
- Memphis – 2760 N Germantown Pkwy.
- Johnson City – 2011 N. Roan St.
- Collierville – 4674 Merchants Park Circle
Diana Leyva covers trending news and service journalism for The Tennessean. Contact her at [email protected] or follow her on X, the platform formerly known as Twitter, at @_leyvadiana
