Forever 21 Bankruptcy: What It Means For 3 NH Stores

NASHUA, NH — Forever 21, the discount clothing store that has been a mall staple for years, is set to end its U.S. operations after initiating the Chapter 11 bankruptcy policy, officials said.

Stores will remain open for now, but the company will begin liquidation sales and intends to close all locations if no potential buyer emerges.

"Through their chapter 11 cases, the Company will implement an orderly wind down of its U.S. business while continuing to conduct a marketing process to solicit interest in a going concern transaction or a sale of some or all of its assets," the company said in a news release.

The company filed for bankruptcy in 2019 before this latest news. Still, problems remained consistent: rising costs, economic challenges, and hearty competition from others in the fast-fashion side of the industry.

"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, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends," said the company's Chief Financial Officer, Brad Sell.

"As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors, and other stakeholders."

In New Hampshire, Forever 21 has three locations in Manchester, Nashua, and Salem.

Forever 21’s locations outside of the United States are operated by other licensees and are not included in the Chapter 11 filings, officials said.