Forever 21 Bankruptcy: What It Means For 15 NJ Stores

NEW JERSEY — Citing slower mall traffic and online competition in the "fast fashion" industry, retailer Forever 21 has filed for bankruptcy for the second time in two years.

The discount clothing store, which has been a mall staple for years, has 15 stores in New Jersey. Forever 21 will wind down its U.S. operations after seeking Chapter 11 bankruptcy protection, the company announced.

Stores will remain open for now, but the company will begin liquidation sales, with the intention to close all 300+ locations if there is no potential buyer.

"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, but the problems remained consistent: rising costs, economic challenges and hearty online competition from the likes of Temu and Shein 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...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," he said.

In New Jersey, Forever 21 has 15 locations. They include:

• Tanger Outlets Atlantic City
• Bridgewater Commons
• Cherry Hill Mall
• Deptford Mall
• Menlo Park Mall
• The Mills at Jersey Gardens
• Freehold Raceway Mall
• Newport Centre
• Hamilton Mall
• Westfield Garden State Plaza
• Rockaway Townsquare
• Ocean County Mall
• Willowbrook Mall
• Quaker Bridge Mall
• Woodbridge Center

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