The company announced plans for an orderly wind-down of its U.S. stores, with locations remaining open temporarily to conduct liquidation sales while seeking a potential buyer for its assets. Forever 21's online platform will also continue to operate during this transition period. The move comes as the retailer grapples with intense competition from online fast-fashion giants like Shein and Temu, rising operational costs, economic pressures affecting its customer base, and shifting consumer preferences toward digital shopping. The decision to file for Chapter 11 bankruptcy in Delaware reflects the company’s struggle to adapt, marking its second such filing in six years after a 2019 restructuring that saw the closure of nearly 180 stores.
Forever 21’s presence in California includes 58 locations, with several concentrated in the Los Angeles-Long Beach area and others spread across Orange, Riverside, and San Diego counties. The San Diego stores at The Shoppes at Carlsbad and Westfield Plaza Bonita Mall have been popular destinations for affordable fashion, drawing crowds with their wide selection of clothing, accessories, and footwear. However, the retailer’s inability to compete with the pricing and convenience offered by global online competitors has led to this drastic step. In preparation for the closures, Forever 21 notified the California Employment Development Department on February 17 of impending layoffs affecting hundreds of employees statewide.
The company’s history traces back to its modest beginnings in 1984, growing into a global chain with over 540 stores worldwide by its peak in the mid-2010s, when annual sales surpassed $4 billion. However, its fortunes declined as the retail landscape evolved, with the rise of e-commerce and the impact of the COVID-19 pandemic further straining its brick-and-mortar model. Authentic Brands Group, which acquired Forever 21 out of bankruptcy in 2020 alongside Simon Property Group for $81 million, may license the brand to other operators as part of the current wind-down process, though the future remains uncertain.
As Forever 21 prepares to exit the U.S. market, the closures will leave a void in San Diego’s shopping scene, particularly for budget-conscious fashion enthusiasts. The company has pledged to minimize the impact on employees, customers, and vendors during this transition, but the loss of these local stores signals a significant shift in the retail landscape. Shoppers are encouraged to visit The Shoppes at Carlsbad and Westfield Plaza Bonita Mall locations while they remain open to take advantage of final sales, as the search for a buyer continues to determine the brand’s ultimate fate.
Originally published on March 17, 2025.
