Forever No More. Operator of mall staple Forever 21 files for bankruptcy protection

Forever 21 has filed for bankruptcy protection for a second time and plans to close down its U.S. business as traffic in U.S. shopping malls fades and competition from online retailers like Amazon, Temu and Shein intensifies.

F21 OpCo, which runs Forever 21 stores, said late Sunday that it will wind down the business in the U.S. under Chapter 11 bankruptcy protection while determining if it can continue as a business with a partner, or if it will sell some or all of its assets.

“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,” Chief Financial Officer Brad Sell said in a statement.

The de minimis tax exemption lets shipments headed to U.S. businesses and consumers valued at less than $800 to enter the country tax free and duty free.

Forever 21 stores in the U.S. will hold liquidation sales and the website will continue to run while operations wind down. The retailer's locations outside of the U.S. are run by other licensees and are not included in the bankruptcy filing. International store locations and websites will continue operating as normal.

Authentic Brands Group owns the international intellectual property associated with the Forever 21 brand and may license the brand to other operators, F21OpCo said.

Jarrod Weber, Global President, Lifestyle at Authentic Brands Group, said the restructuring lets Forever 21 “accelerate the modernization of the brand’s distribution model, setting it up to compete and lead in fast fashion for decades to come. We’re building a direct creation-to-shelf model that moves faster.”

He added that, “We are receiving lots of interest from strong brand operators and digital experts who share our vision and are ready to take the brand to the next level.”

Forever 21 first filed for bankruptcy protection in 2019. The following year, it was acquired by a consortium of parties including Authentic Brands Group and mall owners Simon Property Group and Brookfield Property Partners. In early January, Forever 21’s parent company, Sparc Group, merged with JCPenney to form Catalyst Brands, a new entity that also includes brands like Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.

In 2023, Forever 21 teamed up with Chinese e-commerce player Shein. The partnership allowed Shein to carry Forever 21’s items on its platform. It also offered the opportunity to return Shein online orders at a couple hundred physical Forever 21 stores across the U.S.

Forever 21 joins a slew of other retailers that have filed for Chapter 11 or are liquidating in recent months as retailers face a slowdown in consumer spending and are navigating rising operating costs amid inflationary pressures. They include fabric and crafts retailer Joann Inc and Party City. In February, Outdoor apparel seller Liberated Brands, which has operated stores for surfer and skater-inspired labels like Quiksilver, Billabong and Volcom, filed for bankruptcy — and said it plans to shutter its locations across the U.S.

From Jan. 1 through March 14, U.S. retailers have so far announced 3,735 store closures, according to Coresight Research's weekly tracker.

Forever 21 had been battling a host of macroeconomic challenges as well as its own issues.

Forever 21 was founded in 1984 and, along with other fast-fashion chains like H&M and Zara, rode a wave of popularity among young customers in the mid-1990s. Their popularity grew during the Great Recession, when shoppers were seeking bargains. But Forever 21 went on an aggressive expansion just as shoppers were moving more online. Critics have said that Forever 21 was too slow to embraice online shopping.

The company also faced stiff competition from the likes of Shein and Temu, which churn out trendy items that are cheaper than what Forever 21 offers. For example, Forever 21 sells T-shirts for around $10. Temu has them for $5.

Neil Saunders, managing director of GlobalData, said in a statement that part of the problem now is that Forever 21's stores are too big for its current needs and it's in malls with not enough foot traffic.

“Forever 21 was always a retailer living on borrowed time. Over recent years it has been hit with dual headwinds from a weak apparel market and stiff competition from cheap Chinese marketplaces,” he said. “Both things have eroded its standing and depleted its market share.”

FILE - Shoppers walk by a Forever 21 clothing store, Thursday, Oct. 24, 2019, in Tokyo, as the liquidation sale signs are posted on the storefront. (AP Photo/Kiichiro Sato, file)

OUAGADOUGOU, Burkina Faso (AP) — The military rulers of Burkina Faso have turned to a man once known as “Africa’s Che Guevara" as a way to rally a country struggling to defeat extremists and turning away from former Western allies.

Hundreds of young people gathered over the weekend in the capital, Ouagadougou, for the opening of a mausoleum for legendary leader Thomas Sankara.

“I’m the driver of the revolution!" one young man exclaimed with delight, sitting behind the wheel of the jeep that Sankara used during his presidency decades ago.

A charismatic Marxist leader who seized global attention by defiantly declaring his country could rely on itself, Sankara came to power in 1983 at the age of 33 after he and former ally Blaise Compaore led a leftist coup that overthrew a moderate military faction. But in 1987, Compaore turned on his former friend in a coup that killed Sankara in the capital — and later became president himself.

Nearly four decades after his death, Sankara is being celebrated in Burkina Faso, a nation of 23 million people once known for its bustling arts scene and vibrant intellectual life — including Sankara's anti-imperialist and pan-African legacy.

“When I stepped inside the mausoleum, I felt the revolution,” said Timoté, a 22-year-old who said he came because of what he heard about Sankara at home and at school.

Sankara's mausoleum, designed by Pritzker Architecture Prize-winning architect Francis Kéré, has been the project of current military leader Capt. Ibrahim Traore.

Since taking power during a coup in 2022, Traore has presented himself as the new Sankara. He has named one of the main streets after the revolutionary leader, elevated him to the rank of Hero of the Nation and revived revolutionary slogans such as “Fatherland or death, we will win!” in most of his speeches.

The mission of the mausoleum is "to keep the flame of the revolution alive and to remind the world of Capt. Thomas Sankara’s fight to break the chains of slavery and imperialist domination,” Burkina Faso Prime Minister Jean Emmanuel Ouédraogo said as he read Traore's statement.

Despite promising to fight the security crisis that pushed it to stage a coup, Burkina Faso's military leaders have struggled to deal with the worsening crisis. According to conservative estimates, more than 60% of the country is now outside of government control, more than 2 million people have lost their homes and almost 6.5 million need humanitarian aid to survive.

Human rights groups say the military leadership has installed a system of de facto censorship, crushing critics, while many have been killed by jihadi groups or government forces.

As people flocked to Ouagadougou to celebrate Sankara, life elsewhere in the country reflects a different reality.

“We can go out for a bit in the city center, but with caution,” said one student from Dori, the capital of the northern region, echoing concerns about restrictions on free speech and movement.

The student spoke on condition of anonymity for fear of being arrested.

Security concerns have permeated every aspect of life in Ouagadougou. Even the price of beer has skyrocketed as more places become inaccessible to traders.

“There are two Burkina Fasos,” said a teacher from the east, speaking on condition of condition of anonymity for safety reasons. “One where the streets are deserted at night, and another that comes alive to enjoy the cool evening air.”

People attend the inauguration of the mausoleum for Burkina Faso's legendary leader Thomas Sankara in Ouagadougou, Saturday, May 17, 2025 (AP Photo/Elia Borras)

People visit the newly inaugurated mausoleum for Burkina Faso's legendary leader Thomas Sankara in Ouagadougou, Saturday, May 17, 2025 (AP Photo/Elia Borras)