In a shocking twist to the retail space of Atlanta, Forever 21 is shutting down its four stores in the city. This comes as a development after the fashion giant filed for bankruptcy on March 16, the second time after 2019. Along with F21 OpCo, many other retailers across the US have taken the same step.
While Forever 21 managed to cope with the bankruptcy six years back, it could not return to a comfortable position beyond malls, on the online platform ever since.
Highlights
- Forever 21 filed for bankruptcy and informed shoppers regarding the closure of its 350 stores in the US.
- 4 stores of the fashion retail leader will close in Atlanta as well.
- Competition from online fashion names like Temu and Shein is being viewed as the reason behind this development.
Forever 21 Stores Closing In Atlanta
The fashion brand will soon start liquidating its outlets across the US under Chapter 11 bankruptcy protection and join big retail names like Party City and Joann Inc. In the mass shutdown of its 350 stores, Forever 21 will also be saying goodbye to the following Atlanta retail outlets.
- Atlantic Station: 231 18TH STREET, Suite 565, Atlanta, GA
- Lenox Square: 3393 Peachtree Rd NE, Ste 3136, Atlanta, GA
- Cumberland Mall: 1429 Cumberland Mall Atlanta, GA
- Perimeter Mall: 4400 Ashford Dunwoody Rd., Space #1315, Atlanta, GA
Reasons Why Forever 21 Is Shutting Down
Forever 21 started its fashion expedition in the 80s and quickly established its presence among the youth. Its craze grew even more during the Great Recession when bargains were sought after. But it all started going downhill for the mall fashion staple when online shopping came to light.
In the past few years, making the most of the digital space, budding players like Temu and Shein have scored big. With comparatively lesser-priced products than Forever 21, these online fashion names have the upper hand across the nation, including Atlanta.
The tough fight from online brands has led to a slowed pace in consumer spending in malls in different states, including Atlanta, where Forever 21 continues its offerings. Additionally, the fashion giant is also grappling with increasing rates of operations amid inflationary pressures.
Apart from these, in 2023, F21 OpCo joined hands with Shein and signed a partnership. Nothing changed, though; the fashion brand’s liabilities are now nearly ten times more than its assets.
Response From Forever 21 Representatives
Amid uncertainty regarding what is next for Forever 21, its CEO, Brad Sell, pointed at the tax exemption for foreign fast fashion brands as a key reason for their current state. Any foreign fashion brand shipping for less than $800 in the US can enter both duty-free and tax-free.
Sell said, “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, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin”.
Current Status of Forever 21 Stores in Atlanta
The bankruptcy update of Forever 21 is making a serious buzz in Atlanta’s retail space. However, shoppers are informed that F21 OpCo’s operations will still be on both its website and in stores. It would continue this way till the fashion giant’s executives find a potent solution.
With new fashion brands popping up on the online platform, the future of Forever 21 seems to be uncertain after the bankruptcy filing.
