PHOENIX — Fashion retailer Forever 21 is filing for Chapter 11 bankruptcy protection for the second time and plans to close all U.S. stores, including eight locations in Arizona, the company announced Sunday.
Parent company F21 OpCo confirmed that it will begin winding down operations across the country while seeking potential buyers or partners to take over some or all of its assets.
Arizona Stores Set to Close:
Chandler Fashion Center
SanTan Village
Scottsdale Fashion Square
Arizona Mills Mall
Tempe Marketplace
Park Place (Tucson)
Tucson Mall
Tucson Premium Outlets
The decision marks another blow for the 40-year-old retailer, which first filed for bankruptcy in 2019 but managed to stay afloat after closing numerous stores. Despite efforts to recover, Forever 21 continued to face mounting challenges, especially from fast fashion rivals like Shein and Fashion Nova, the company said.
“Our efforts were ultimately not enough to overcome increasing competition from foreign retailers, rising costs, and shifting consumer habits,” said Forever 21 CFO Brad Sell. He also pointed to the de minimis tax exemption—which allows international shipments under $800 to enter the U.S. tax-free—as a factor that gave foreign brands a pricing advantage.
Founded in 1984, Forever 21 became known for offering trendy, affordable styles to younger shoppers. Its closure adds to a growing list of retail shutdowns, including Joann Fabrics and Macy’s locations in Arizona.
