The retail store Forever 21 has reportedly filed for bankruptcy a second time, resulting in the eventual closure of its 350 US stores, including those in New York City.
The fast-fashion brand entered bankruptcy with $1.58 billion in debt after reportedly losing over $400 million over the last three years.
According to the court filing, Stephen Coulombe, the operating company’s co-chief restructuring officer, noted that Forever 21 was heavily impacted by Shein and Temu’s use of the de minimis exemption, a trade law loophole that allows allowed goods valued under $800 to be shipped into the U.S. without import duties.
Forever 21 is closing the following locations in New York City:
- Kings Plaza Mall: 5301 Kings Plaza, Brooklyn (closing May 1)
- Staten Island Mall: 2655 Richmond Ave., Staten Island (closing May 1)
- Seventh Avenue-Penn Station: 435 Seventh Ave., Manhattan (closing March 30)
- Times Square: 1540 Broadway, Manhattan (closing March 30)
- The Shops at Atlas Park: 80-40 Cooper Ave., Glendale (closing March 30)
Forever 21 previously filed for bankruptcy in 2019 and obtained $350 million in financing. Previous to this current filing, Forever 21 was looking for a buyer for several months, and despite making contact with several bidders, the court filing stated that no viable deal ever came together.
Liquidation sales are set to begin at the stores that will be closing.
