The once-dominant fast-fashion retailer Forever 21 has filed for bankruptcy protection for the second time in six years, announcing plans to shutter its 350 U.S. locations, including two popular stores in the Tampa Bay area.
F21 OpCo, the U.S. retail operator for the 40-year-old Los Angeles-based chain, submitted Chapter 11 bankruptcy documents on Monday. While specific closure dates weren’t announced, the company confirmed that all American stores will eventually cease operations following liquidation sales.
The retailer, which rose to prominence as a teen fashion destination throughout the late 1990s and early 2000s, joins a growing list of affordable shopping chains facing financial difficulties. Recent months have seen similar closure announcements from Joann, Big Lots, Party City, Dollar General, and American Freight.
Tampa Bay shoppers will lose access to Forever 21 locations at:
- Brandon Exchange, 566 Brandon Town Center Mall in Brandon
- Countryside Mall, 27001 U.S. 19 N. in Clearwater
A third regional location at the Mall at University Town Center in Sarasota (140 University Town Center Drive) will also close.
Customers holding gift cards have been advised to use them by April 15, 2025, according to bankruptcy filings.
Brad Sell, chief financial officer of F21 OpCo, attributed the company’s failure to intense competition from international fast-fashion competitors. “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,” Sell stated. The referenced exemption allows shipments valued under $800 to enter the country without taxes or duties.
Forever 21 was established in Los Angeles in 1984. During its previous bankruptcy filing in 2019, the company shuttered approximately 200 domestic locations. The current bankruptcy does not affect international Forever 21 stores, which operate under licensing agreements.
Industry analysts note that the retailer has faced increasing pressure not only from online shopping platforms but also from direct competitors like Abercrombie & Fitch, Zara, and H&M. Additionally, newer brands targeting younger demographics, such as Aritzia and Skims, have captured market share previously held by established mall retailers.
Jackie Soffer, CEO of Turnberry Associates and principal owner of Aventura Mall, observed this trend last year, noting that emerging fashion brands were gaining popularity at the expense of traditional retailers. Forever 21 closed its Aventura Mall location earlier this year.