Forever 21 to close all NY stores amid bankruptcy filing

Yahoo

19-03-2025

All Forever 21 stores, including those in New York, are set to close by May 1 as the retailer's operator filed its second bankruptcy in six years, USA TODAY reported.
F21 OpCo, the operator of Forever 21, announced the voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware on Sunday and legal counsel for F21 OpCo said during a hearing on Tuesday that the company anticipates to vacate its approximately 354 leased stores by the end of April, a spokesperson for the fast fashion retailer told USA TODAY.
According to court records, the company plans to complete all store closing sales before May 1, with many closing before April 1. Once the closing sales are complete, the stores will close, the spokesperson noted.
"On behalf of the company, I'd like to express our deep appreciation for the hard work of our dedicated employees and their commitment to our customers," Brad Sell, chief financial officer of F21 OpCo, said in a news release. "We are also grateful for the many years of support from our partners and our loyal customers, who have allowed us to serve as a fashion industry leader and go-to retailer for generations.'
Here's what to know.
The chain, which sells trendy styles for young men and women at low prices, has struggled to compete with Chinese online discount sites Shein and Temu.
Jamie Salter, the CEO of Authentic Brands, the fast fashion retailer's brand and intellectual property owner, spoke during a conference last year and said Forever 21's partnership with Shein, which came to be in 2023, only yielded modest results, according to Retail Dive.
Salter said before Authentic Brands and mall owners, Simon Property Group and Brookfield Corporation, saved Forever 21 from bankruptcy five years ago, he "didn't see Shein" and "didn't see Temu," per Retail Dive. The CEO added that he and his partners decided to partner with Shein because their "supply chain is too good" and they knew they could not "beat them."
Sell, the CFO of F21 OpCo, said foreign fast fashion companies take advantage of the de minimis exemption, which allows shipments of items valued at or under $800 to enter the U.S. duty-free and with very little paperwork. This exemption helps Chinese online retailers, such as Shein and Temu, keep clothing prices markedly low.
President Donald Trump halted his administration's repeal of the exemption in February after the rapid change created disruptions for customs inspectors, postal and delivery services and online retailers.
According to the bankruptcy court filing from March 17, all 21 stores in New York are being considered for closure. The move is pending court approval. Here's which New York locations are on the list:
Staten Island: Staten Island Mall, 2655 Richmond Ave., Suite 1040
Valley Stream: Green Acres Mall, 2034 Green Acres Mall, Space #108
Bayshore: South Shore Mall, 1701 Sunrise Highway, #D10
West Nyack: Palisades Center, 3510 Palisades Center Drive, Suite G307
Victor: Eastview Mall, 7979 Pittsford-Victor Road, Suite #140
Poughkeepsie: Poughkeepsie Galleria, 2001 South Road, #181
Yorktown Heights: Jefferson Valley Mall, 650 Lee Blvd., #D118
Middletown: Galleria at Crystal Run, 1 Galleria Drive, Space #D207
Glendale: The Shops at Atlas Park, 80-40 Cooper Ave., Suite #4-002
Niagara Falls: Fashion Outlets of Niagara Falls, 1965 Fashion Blvd., Suite 238
Riverhead: Tanger Outlets Riverhead, 200 Tanger Mall Drive, Suite 201
Lake Grove: Smith Haven Mall, 313 Smith Haven Mall, Space #M05
Yonkers: Cross Country Center, 8040 Mall Walk
Brooklyn: Kings Plaza Shopping Center, 5301 Kings Plaza, #210
Garden City: Roosevelt Field, 630 Old Country Road
Deer Park: Tanger Outlets Deer Park, 152 The Arches Circle, Suite 924
New York City: Seventh Avenue — Penn Station, 435 Seventh Ave.
Central Valley: Woodbury Premium Outlets, 223 Red Apple Court, Space #0223
White Plains: The Westchester, 125 Westchester Ave.
Buffalo: Walden Galleria, 1 Walden Galleria, #TH110
New York City: Times Square, 1540 Broadway
Forever 21 closure: Store specializing trendy, thrifty fashions is closing at Eastview Mall
Forever 21's operator will look for a buyer of the retailer's assets, but until then, its stores will remain open and business will commence as usual, USA TODAY reported. To pay employees, the operator said it filed motions with the court that will allow them to use cash collateral for wages and benefits.
Forever 21 stores being in malls across the U.S. past May will depend on whether F21 OpCo can find a buyer. Although the Forever 21 stores may be closing, Authentic Brands owns the retailer's brand and plans to continue evolving the business.
"Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the U.S. with a strong future ahead. Retail is changing, and like many brands, Forever 21 is adapting to create the right balance across stores, e-commerce and wholesale," Jarrod Weber, global president for lifestyle at Authentic Brands, told USA TODAY in a statement on Monday.
Weber said that the company's "licensee's decision to restructure its operations does not impact Forever 21's intellectual property or its international business."
"It presents an opportunity to accelerate the modernization of the brand's distribution model, setting it up to compete and lead in fast fashion for decades to come," he said.
See the list: Joann auctioning all NY store leases amid bankruptcy
Yes, for a short period.
Forever 21 plans to take gift cards for the first 30 days of its bankruptcy, according to bankruptcy court documents, which will be through April 15.
Contributing: Mississippi Clarion Ledger reporter Bonnie Bolden and USA Today Network
Emily Barnes reports on consumer-related issues for the USA TODAY Network's New York Connect Team, focusing on scam and recall-related topics. Follow her on X and Instagram @byemilybarnes. Get in touch at [e-mail].
This article originally appeared on Rochester Democrat and Chronicle: Forever 21 to close all NY stores amid bankruptcy filing