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)
ANCHORAGE, Alaska (AP) — A state appeals court is being asked to dismiss felony voter misconduct charges against an Alaska resident born in American Samoa, one of numerous cases that have drawn attention to the complex citizenship status of people born in the U.S. territory.
In arguments Thursday, attorneys for Tupe Smith plan to ask the Alaska Court of Appeals in Anchorage to reverse a lower court's decision that let stand the indictment brought against her. Her supporters say she made an innocent mistake that does not merit charges, but the state contends Smith falsely and deliberately claimed citizenship.
Prosecutors also have brought charges against 10 other people from American Samoa in the small Alaska community of Whittier, including Smith’s husband and her mother-in-law. American Samoa is the only U.S. territory where residents are not automatically granted citizenship by being born on American soil and instead are considered U.S. nationals. Paths to citizenship exist, such as naturalization, though that process can be expensive and cumbersome.
American Samoans can serve in the military, obtain U.S. passports and vote in elections in American Samoa, but they cannot hold public office in the U.S. or participate in most U.S. elections.
About 25 people gathered on a snowy street outside the courthouse before Thursday's hearing to support Smith. One woman, Fran Seager of Palmer, held a sign that said, “Support our Samoans. They are US nationals.”
Smith's husband, Michael Pese, thanked the American Samoa community in the Anchorage area. “If it wasn’t for you guys, I wouldn’t be strong enough to face this head on,” he said.
State Sen. Forrest Dunbar, a Democrat who attended the rally, said the Alaska Department of Law has limited resources.
“We should be going after people who are genuine criminals, who are violent criminals, or at least have the intent to deceive,” he said. “I do not think it is a good use of our limited state resources to go after these hardworking, taxpaying Alaskans who are not criminals.”
Smith was arrested after winning election to a regional school board in 2023. She said she relied on erroneous information from local election officials when she identified herself as a U.S. citizen on voter registration forms.
In a court filing in 2024, one of her previous attorneys said that when Smith answered questions from the Alaska state trooper who arrested her, she said she was aware that she could not vote in presidential elections but was “unaware of any other restrictions on her ability to vote.”
Smith said she marks herself as a U.S. national on paperwork. But when there was no such option on voter registration forms, she was told by city representatives that it was appropriate to mark U.S. citizen, according to the filing.
Smith “exercised what she believed was her right to vote in a local election. She did so without any intent to mislead or deceive anyone,” her current attorneys said in a filing in September. “Her belief that U.S. nationals may vote in local elections, which was supported by advice from City of Whittier election officials, was simply mistaken.”
The state has said Smith falsely and deliberately claimed citizenship. Prosecutors pointed to the language on the voter application forms she filled out in 2020 and 2022, which explicitly said that if the applicant was not at least 18 years old and a U.S. citizen, “do not complete this form, as you are not eligible to vote.”
The counts Smith was indicted on “did not have anything to do with her belief in her ability to vote in certain elections; rather they concerned the straightforward question of whether or not Smith intentionally and falsely swore she was a United States citizen,” Kayla Doyle, an assistant attorney general, said in court filings last year.
One of Smith's attorneys, Neil Weare, co-founder of the Washington-based Right to Democracy Project, said by email last week that if the appeals court lets stand the indictment, Alaska will be “the only state to our knowledge with such a low bar for felony voter fraud.”
Bohrer reported from Juneau, Alaska.
Michael Pese and his wife, Tupe Smith, stand outside the Boney Courthouse in Anchorage, Alaska, Thursday, Jan. 15, 2026, ahead of the Alaska Court of Appeals hearing a challenge to the voter fraud case brought against her by the state. (AP Photo/Mark Thiessen)
Michael Pese, left, his wife, Tupe Smith, and their son Maximus pose for a photo outside the Boney Courthouse in Anchorage, Alaska, Thursday, Jan. 15, 2026, ahead of the Alaska Court of Appeals hearing a challenge to the voter fraud case brought against her by the state. (AP Photo/Mark Thiessen)
FILE - Tupe Smith poses for a photo outside the school in Whittier, Alaska, May 13, 2025. (AP Photo/Mark Thiessen, File)
