Forever 21 files for bankruptcy protection again.

Forever 21 has once again filed for bankruptcy protection and plans to close all its stores across the United States. This marks the second time the company has filed for bankruptcy in six years. The primary reasons include a sluggish apparel market, intensified competition from Chinese e-commerce platforms, and rising operating costs, all of which have further weakened its market position and share. The company is currently actively seeking potential buyers but has yet to secure a viable deal.

Chief Financial Officer Brad Sell stated that the company is working to minimize the impact of the bankruptcy on stakeholders. However, competition from overseas fashion e-commerce giants such as Amazon, Temu, and Shein has placed Forever 21 at a significant disadvantage in terms of pricing and profitability. These competitors benefit from the U.S. “de minimis” policy, which allows goods valued at less than $800 to be imported duty-free, further squeezing the market share of traditional retail brands. Additionally, Forever 21 has accumulated losses exceeding $400 million over the past three fiscal years, including a $150 million loss in fiscal year 2024 and an EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $180 million in 2025.

It is disheartening to see that Forever 21, once a global leader in fast fashion, with 43,000 employees and annual revenue exceeding $4 billion at its peak, is now facing decline. Amid shifting market dynamics, the rise of emerging competitors, and growing economic challenges, this fast fashion giant is once again on the brink of collapse and faces the possibility of exiting the U.S. market.

**Photo reference: https://www.youtube.com/watch?v=DxlkvrbRvqI **