Photo: iStockphoto
Forever 21 will cease to exist in the United States.
According to CNBC, the beloved fast-fashion retailer, operated by Catalyst Brands, "filed for bankruptcy protection for the second time in six years" on Sunday (March 16) and plans to shutter all U.S. locations, including those in Florida.
Stephen Coulombe, Catalyst Brand's co-chief restructuring officer, revealed why the company made the decision to shutter all remaining Forever 21 stores across the nation, zooming in on competitors like Temu and Shein.
"Certain non-U.S. online retailers that compete with the Debtors, such as Temu and Shein, have taken advantage of this exemption and, therefore, have been able to pass significant savings onto consumers. Consequently, retailers that must pay duties and tariffs to purchase product for their stores and warehouses in the United States, such as the Company, have been undercut. Despite wide-spread calls from U.S. companies and industry groups for the U.S. government to create a level playing field for U.S. retailers by closing the exemption, U.S. laws and policies have not solved the problem."
A closing date for all U.S. stores has yet to be announced as the company prepares to shutter its remaining locations.
Visit Forever 21's website for a full list of stores closing in Florida.
For more information on the impending closures, read: Popular Clothing Retailer Set To Close All US Stores.