National clothing chain to close all U.S. stores: Here’s the deadline to use gift cards

Once mega-popular fashion retailer Forever 21 is closing all 354 of its locations nationwide in the coming months after filing for bankruptcy for the second time since 2019.

Amid a recent merger with JCPenney, Forever 21 parent company SPARC Group said it was exploring “strategic options” for Forever 21 before filing for bankruptcy as it was “unable to find a sustainable path forward.”

It is now in the process of preparing for “an orderly wind down of its U.S. businesses.”

The company expects all its remaining stores to permanently close by May 1, according to USA Today.

However, some stores may have already closed or are gearing up to close by April 1, as Forever 21 previously announced 200 locations would close while it was considering bankruptcy.

If you’re planning to shop using a gift card, you’ll want to do so before April 15.

“Our stores will remain open for the time being and we will continue to fulfill customer orders placed online,” the company announced.

“We also will continue to honor customer gift cards and store credit through and including April 15, 2025.”

The closures only apply to Forever 21’s operations in the United States. Forever 21 stores outside of the U.S. will continue to operate business as usual, the company said.

The company has struggled financially over the past several years, ultimately blaming “rising costs and increased competition from abroad,” for its demise.

“While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies … pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends,” Brad Sell, chief financial officer of F21 OpCo, said in a statement.

“As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors and other stakeholders.”

After filing for bankruptcy for the first time in 2019, Simon Brookfield and Authentic bought Forever 21 out of bankruptcy.

CEO Jamie Salter later said the acquisition was “probably the biggest mistake,” he ever made.

In 2025, the company operates about 350 stores nationwide — 11 of which are in Massachusetts.

Leave a Reply

Your email address will not be published. Required fields are marked *