Forever 21 Begins NYC Store Closures After Bankruptcy Filing

Photos: Cititour.com

Forever 21 is officially in fashion’s clearance bin. The once-dominant fast fashion retailer has filed for Chapter 11 bankruptcy and has begun shutting down its U.S. operations after failing to find a buyer.

Cititour stopped by the brand’s Midtown flagship directly across from Macy’s Herald Square, where the mood was less “mourning” and more “markdowns.” Shoppers combed through racks of distressed denim and crop tops with prices slashed 40 to 60 percent.

The bankruptcy filing comes after a strategic review and failed attempts to remain competitive in a cutthroat retail market. Company CFO Brad Sell pointed to rising costs, shifts in consumer behavior, and fierce pricing pressure from foreign fast fashion giants as major culprits in Forever 21’s fall from relevance.

“For years, we were the go-to for affordable trends,” Sell said. “But we just couldn’t keep up.”

The company is still entertaining potential buyers for its assets, but barring a last-minute savior, the end is near. Outside of the U.S., Forever 21 stores will continue operating as usual under separate licensing agreements.

Forever 21 is the latest fashion empire to be brought down by the brutal reality of today’s consumer economy. Shoppers may still get one last haul, but the “forever” in Forever 21 is looking more like a final sale.