AUSTIN, Texas — Forever 21 has started liquidation sales at more than 350 stores nationwide as the company files for Chapter 11 bankruptcy protection, struggling with the downturn in mall traffic across the U.S.
The bankruptcy filing from F21 OpCo, which operates Forever 21, outlines plans to scale back its U.S. presence while exploring options for the brand’s future. This includes possibly partnering with someone to keep things running or selling off its assets altogether. Forever 21 currently operates in 43 states and Puerto Rico.
What Forever 21 locations could close in the Austin area?
According to the bankruptcy filing, these are the more than 350 Forever 21 stores beginning liquidation states.
California is hit the hardest, with 58 stores closing, followed by Texas (32), Florida (23), and New York (21). In Central Texas, these three locations are listed in the filing:
- Barton Creek Square: 2901 S. Capital of Texas Highway, #M06A, Austin, TX
- The Domain: 3409 Esperanza Crossing, Austin, TX
- San Marcos Outlets: 4015 Interstate 35th Frontage Road # 740, San Marcos, TX
It’s still unclear how long the liquidation process will last or if the company will find a buyer to keep things afloat.
A statement from Forever 21 mentioned that they’re asking the court for approval to use cash collateral to continue paying wages and benefits to employees during the bankruptcy.
Founded in 1984, Forever 21 rose to prominence alongside fast-fashion giants like H&M and Zara, gaining a massive following from young shoppers in the ‘90s.
The brand thrived during the Great Recession when bargain hunting was key.
But as the company aggressively expanded, it failed to fully transition to online shopping, leaving it vulnerable to competition from cheaper alternatives like Shein and Temu, who offer trendy styles at a fraction of the cost. For example, while Forever 21 sells T-shirts for $10, Temu offers the same for just $5.