Forever 21 files for bankruptcy and will close all U.S. stores, a tale of the Retail Apocalypse

Today's tale of the Retail Apocalypse comes from The Wall Street Journal, which uploaded How Forever 21 Plummeted From $4B in Sales to Twice Bankrupt two days ago as part of its "What Went Wrong" series.

Forever 21 was once the premier shopping destination for teens who wanted cheap and fashionable clothing. But now, the fast fashion pioneer is filing for its second Chapter 11 bankruptcy. After being bought out by licensing firm Authentic Brands Group and real-estate companies Simon Property Group and Brookfield Property Partners, Forever 21 struggled against Asian e-commerce powerhouses like Shein and Temu.

WSJ breaks down how its own market toppled the fast fashion giant.

I haven't mentioned Forever 21 since Vox explains 'The lies that sell fast fashion' nearly a year ago and blogged specifically about Forever 21 since Company Man asks 'The Decline of Forever 21...What Happened?' — a tale of the Retail Apocalypse three years ago. Company Man Mike composed a list of the chain's liabilities then, which I'm reproducing here.


The Wall Street Journal covered all of these, then added competition with Shein and Temu. As I wrote just before Forever 21 filed for bankruptcy the first time, "until Americans, especially young women, change their fashion tastes, they will just buy fast fashion online..." That happened. The best I can say is that Amazon isn't to blame this time.

The Wall Street Journal did not emphasize that Forever 21 would close all U.S. stores, but NBC News made that its headline in Forever no more. Iconic American retailer to close its doors.

Forever 21, known for trendy fast fashion pieces, has filed for bankruptcy. The final sales in its stores are offering steep discounts as the company liquidates its assets. As NBC News’ Brian Cheung reports, in part the company cites pressure from online Chinese retailers for its demise.

The consumer sales figures remind me that I should go on recession watch again. If the U.S. does go into recession this year, it won't be because of internal economic forces, but because of government interference, which normally tries to cushion against economic downturns. Biden piloted the U.S. economy to a soft landing, then Hoover Cleveland tries to crash the plane anyway!

I close with A look at fast fashion and consumer behavior as Forever 21 closes all U.S. stores from KCAL News.

Asit Sharma, The Motley Fool senior analyst, discusses the downfall of Forever 21.

Neither Company Man Mike nor The Wall Street Journal mentioned the effects of the pandemic on consumer behavior as a cause of Forever 21's travails, so Asit Sharma added another factor to its failure.

That concludes today's tale of the Retail Apocalypse. Stay tuned for the Vernal Equinox on the last day of the blogging year.