Another Popular National Retailer Is Closing All Texas Locations After Declaring Bankruptcy

Another popular retailer won't be around forever it appears.

National retailer Forever 21 has filed for bankruptcy a second time according to reports. Forever 21 is citing continued high inflation and increased competition in the fashion market.

According to the Dallas Morning News, the fashion retailer will be closing all stores in Texas and across the nation. Forever 21 operates 32 stores in Texas. Forever 21 was at one time, an iconic brand across the nation.

After being founded in 1984, Forever 21 gained popularity among younger shoppers who wanted trendy styles that didn't break the bank.

The Rise and Fall of Forever 21

Founded by South Korean immigrants, Forever 21 became very popular. There probably wasn't a mall you went to that didn't have a Forever 21 location. The Dallas Morning News reports that at its peak, Forever 21 employed more than 43,000 people while operating 800 stores around the world. During this time, Forever 21 would bring in over $4 billion in sales.

Today, Forever 21 operates 354 stores in the United States. It lost $150 million in 2024 and the Dallas Morning News reported that Forever 21 was projected to lose $180 million this year. Over the last three years, Forever 21 has lost $400 million and enters bankruptcy with $1.58 billion in debt.

The Dallas Morning News reported that e-commerce and the failures of malls across America had a large impact on retailers like Forever 21.

The rise of e-commerce retailers and the slow death of the American mall hurt apparel companies such as Forever 21 and Bonobos-parent Express, which filed for bankruptcy last year.

“Brick-and-mortar retailers like Forever 21 operate in a highly competitive environment where the cost of doing business is expensive and rising with inflation rates,” said Sarah Foss, head of legal and restructuring at Debtwire, which provides data and analytics on leveraged loans.

Stores Closing In Texas and Beyond

Forever 21 plans on closing all stores in Texas and across the U.S. The company plans to hold liquidation sales.

There was no date given as to when stores would begin sales.