Forever 21, once a powerhouse in teen fashion, has announced plans to permanently close all U.S. stores and file for Chapter 11 bankruptcy.
In a statement released Monday, the company cited rising competition from foreign retailers and increased production costs, calling its current business model “unsustainable.”
While Forever 21 plans to shutter its U.S. operations, the company confirmed that stores will remain open temporarily as the closure process rolls out. Forever 21 has not confirmed an exact timeline for the closures, stating that discussions are “ongoing.”
The closures will only affect U.S. stores— locations outside the country will continue operating as usual.
The recent bankruptcy filing is the second of its kind for the company. Forever 21 previously filled for chapter 11 protections in 2019.
In Chicago, one Forever 21 store remains open, along with 11 additional locations across the Chicagoland area.
While the company has yet to confirm specific closure dates, it’s likely that all Chicago and Illinois locations will shut down as the bankruptcy process moves forward.