Forever 21’s future looks grim as it enters bankruptcy, begins liquidations at area stores
Consider it not-so Forever 21.
Late Sunday night, the LLC parent company of the youth fast-fashion retailer reported it was entering its second round of bankruptcy in its U.S. operations.
“The company will conduct liquidation sales at its stores while simultaneously conducting a court‑supervised sale and marketing process for some or all of its assets,” F21 OpCo, LLC said in a release issued late Sunday.
The company noted that stores and its website remain operating, as “orderly wind down commences.”
In this region, Forever 21 operates at the Tacoma Mall and Westfield Southcenter in Tukwila.
The Bellingham Herald reported Monday that the Forever 21 at Bellis Fair mall in Bellingham was already marking down prices in order to liquidate its inventory, and the mall manager stated he anticipated the store to be closed by the end of April.
Representatives for Simon Property Group, owner of Tacoma Mall, did not immediately respond Monday to request for comment. The mall itself has been undergoing a massive renovation, with a multi-million dollar overhaul of the main mall building and the addition of two exterior buildings for its new “Village,” which will bring several new restaurants.
Simon, Brookfield Properties and brand management firm Authentic Brands Group previously joined forces to buy Forever 21 for $81 million after its first bankruptcy in 2019, when it shut down 200 stores.
Reuters reports that Forever 21 is now owned by Catalyst Brands, which was formed Jan. 8 through the merger of Sparc and JC Penney, a department store chain owned since 2020 by mall operators and Simon Property Group. Authentic Brands continues to own the store’s trademark and intellectual property.
There are currently more than 540 Forever 21 stores worldwide and online.
The company’s LLC has sought approval from bankruptcy court to use cash collateral “to pay employee wages and benefits in the ordinary course of business and otherwise fund operations through the Chapter 11 process,” the release stated.
Brad Sell, chief financial officer for the LLC, blamed overseas competition for his company’s struggles, where discount sites such as Shein and Temu have taken advantage of the “de minimis” tax loophole that allows packages from China valued less than $800 to be processed without customs duties or tariffs.
Sell said in a 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.”
This story was originally published March 17, 2025 at 3:48 PM.
