Forever 21 files for 2nd bankruptcy, will close 8 stores in Arizona

PHOENIX — Retail clothing giant Forever 21 announced late Sunday it is planning to close all stores, including eight in Arizona, after filing bankruptcy for the second time.

F21 OpCo, which owns Forever 21 stores announced it would “wind down” the company in the U.S. under Chapter 11 bankruptcy protection. The clothing retailer will try to continue as a business with a partner or attempt to sell some or all of its assets.

Details on Forever 21 bankrupty

The more than 40-year-old company tried to salvage what it could after filing for bankruptcy in 2019, which led to a wave of store closures.

However, Forever 21 continued to struggle with sales due to online clothing companies such as Shein and Fashion Nova, according to a company press release.

“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,” Forever 21 CFO Brad Sell said in a press release.

The de minimis tax exemption allows shipments to U.S. businesses and consumers that are worth less than $800 to enter the country tax free.

The clothing retailer first opened its doors in 1984 and made a name for itself selling trendy clothes to young buyers.

Where are Arizona Forever 21 stores?

There are eight Forever 21 stores located in Arizona at following shopping malls and centers:

• Chandler Fashion Center
• SanTan Village
• Scottsdale Fashion Square
• Arizona Mills Mall
• Tempe Marketplace
• Park Place (Tucson location)
• Tucson Mall
• Tucson Premium Outlets

Forever 21 closures will join the mass of retail shutdowns, including fabric and craft store Joann and Macy’s. 

The Associated Press contributed to this report. 

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