The Forever 21 shutdown hit harder than anyone expected. What looked like a simple wave of store closures turned into a string of surprises that kept people talking. Between corporate missteps and fan meltdowns, every stage revealed something new. So what exactly happened to the fast-fashion giant? Here are ten facts that may surprise you.
All 354 U.S. Stores Were Closed By May 2025
Forever 21 officially closed its 354 U.S. stores in spring 2025. The shutdown began in April and was finished by May 1. Some stores shut quietly, while others concluded with “everything must go” sales, and many fans said goodbye to $3 earrings and mall trips that had defined their memories.
Second Bankruptcy In Six Years
Forever 21’s financial struggles continued into 2020. By March 2025, the company filed for bankruptcy protection again. It was the second collapse in six years. Investors and analysts saw this repeat filing as a red flag, signaling deeper structural issues inside the business that had never been fixed.
Inflation Crushed Operating Costs
Running Forever 21 stores stopped making sense. Wages kept rising, shipments got pricey, and inventory bills stacked up. Then inflation after 2021 pushed everything over the edge. Rent, which was once fine, became crushing. And the kicker? Even the little everyday items turned costly, leaving the model broken.
Forever 21 Lost To Online Rivals
Forever 21 just couldn’t keep up with Shein and Temu. Their prices were dirt cheap, and shopping straight from an app was way easier than heading to the mall. Gen Z quickly shifted loyalty to those digital-first brands. And the proof? TikTok hauls were packed with Shein and Temu boxes instead of Forever 21 bags.
No Buyer Came Forward To Save It
The plan was simple: find a buyer and stop the shutdown. F21 OpCo searched, but by April 30, nobody wanted the deal. Hopes of a last-second rescue fell flat. Meanwhile, fans flooded social media with campaigns, desperate to keep Forever 21 alive. In the end, their pleas went unanswered.
Stores Withheld Rent To Stay Open Longer
To stretch operations, certain Forever 21 locations stopped paying rent. The idea was to buy time while bankruptcy talks played out. Landlords didn’t take it lightly—complaints piled up over unpaid dues. In some malls, patience ran out fast, and stores were locked out before the month was even over.
Employees Left Without Severance
Closures left employees blindsided, with many suddenly out of work and offered no severance pay. Some only discovered their jobs were gone after seeing posts on social media rather than hearing it directly from their managers. The abrupt end left workers frustrated, anxious, and uncertain about their future.
Gift Cards And Refunds No Longer Accepted
On April 15, Forever 21 stopped accepting gift cards, refunds, and exchanges. The change was sudden, and customers had little chance to prepare. Many rushed to use their cards before the cutoff, but others never got the chance. Those shoppers ended up stuck with unused balances as the shutdown moved forward.
Forever 21’s Website Promised A “Refresh”
After shutting stores, Forever 21 left a surprising note online. Its website promised a “refresh” and hinted at new life through licensing. To some, it sounded like a comeback plan, while to many others, it felt uncertain. Even fans turned that vagueness into memes.
International Stores Remain Open
Forever 21 may be gone in the U.S., but the brand isn’t completely finished. Stores overseas, especially in Asia and Latin America, are still open and busy. Also, the global footprint is keeping it alive outside American malls. Some U.S. fans even joked about flying abroad just to shop there again.
