Forever 21, a retailer that has sold affordable clothing for men and women since 1984, has filed for Chapter 11 bankruptcy for the second time and will begin closing its U.S. stores, according to a March 16 news release.

The overview

The company plans to wind down its U.S. business while seeking potential buyers or a transition of its assets, according to the release. International stores will be unaffected.

Forever 21 representatives cited increasing competition from foreign fast-fashion brands, rising costs, economic challenges affecting its core customers, and evolving consumer trends as reasons for the bankruptcy. Forever 21 first filed for bankruptcy in 2019.

“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,” Brad Sell, chief financial officer of F21 OpCo, said in the release. “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.”
Forever 21 cited increasing competition from foreign fast-fashion brands, rising costs, economic challenges affecting its core customers, and evolving consumer trends as reasons for the bankruptcy. (Jamie Moore/Community Impact)


Long story short

Austin had three Forever 21 stores until Sep. 2024, when the location at The Domain closed, according to previous reporting by Community Impact. The Barton Creek Square location remains open but is expected to close gradually.

The Forever 21 store at Tanger Outlets in San Marcos is preparing to close the weekend of March 29.
Forever 21 in San Marcos' Tanger Outlets, located at 4015 S. I-35 S. frontage road, had a sign up as of March 25, stating "last 4 days!" (Jamie Moore/Community Impact)
  • 2901 S. Capital of Texas Hwy. M06A, Austin; 4015 S. I-35 S. frontage road, San Marcos
  • www.forever21.com