Policies & IssuesFeb 20, 2026
Supreme Court Rules Against Most of President Trump’s TariffsIn a 6-3 ruling, the court said the president exceeded his authority when imposing sweeping tariffs under IEEPA.
MajorsOct 01, 2019
Forever 21 Files for Bankruptcy, May Close Up to 350 Stores
The fast-fashion retailer is expected to shutter most of its stores in Asia and Europe while maintaining a downsized U.S. presence.
A Forever 21 store on New York City’s Fifth Avenue. The Los Angeles-based retailer, which just filed for bankruptcy, will scale back its physical footprint in the United States. (Image courtesy of Forever 21)
Los Angeles—Fast-fashion retailer Forever 21 filed for Chapter 11 bankruptcy protection Sunday, and plans to close stores in the United States and internationally.
The company will shutter up to 350 of its 800 locations worldwide, including 178 in the United States, and will cease operations in 40 countries, including Canada and Japan, as per a New York Times report.
Its beauty brand, Riley Rose, will reportedly close its 15 locations in the U.S., or be incorporated into existing Forever 21 stores.
“This was an important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21,” Linda Chang, the fast-fashion chain’s executive vice president and the founders’ daughter, said in a press release.
In a letter to customers, the company said it does not plan to exit any major markets in the U.S.
Internationally, it said it will close most of its locations in Asia and Europe while continuing operations in Mexico and Latin America.
The letter assured customers the company is not going out of business, noting its bankruptcy filing “is a deliberate and decisive step to put us on a successful track for the future.”
Forever 21 has secured $275 million in financing from its existing lenders with JPMorgan Chase and $75 million in new capital from TPG Sixth Street Partners to facilitate its restructuring efforts.
The company’s stores are open for business, continuing to accept gift cards and operating under the same policies.
Founded in 1984, Forever 21 began as a small store in Los Angeles, operated by South Korean immigrants Do Won Chang and his wife, Jin Sook.
“The Changs, the founders and owners of Forever 21, serve as a rare and exemplary model of the American Dream,” Chief Restructuring Officer Jonathan Goulding said in a court statement.
“From humble beginnings, the Changs created a worldwide enterprise that, at its peak, employed 43,000 people and had $4.1 billion in annual sales.”
Its first international store opened in Canada in 2001. By 2015, the company had 251 international stores, expanding to 40 countries across five continents.
“Unfortunately, this rapid international expansion challenged Forever 21’s single supply chain and the styles failed to resonate over time across other continents despite its initial success,” Goulding said.
The company leases most of its stores and offices, a total of 12.2 million total square feet for its retail stores, according to court documents, adding up to $450 million in rent.
More
than 70 of its stores exceed 35,000 square feet.
Goulding noted the retailer’s super-sized stores led to “complicated assortment strategies and triggered inventory management challenges.”
While traditional retailers have been losing out to online shopping, Forever 21 has a strong ecommerce presence, with online sales accounting for 16 percent of all sales, as per court documents.
However, its fast-fashion approach, with basic T-shirts and leggings under $5, may not resonate with the growing number of consumers interested in more eco-friendly fashion choices.
The rise in interest in sustainable clothing has led to the success of companies like ThredUp, an e-tailer for secondhand clothes, and has prompted brands like Levi’s and H&M to introduce eco-conscious collections.
Forever 21’s restructuring plans includes closing underperforming locations, a “back-to-basics” merchandising plan, and strengthening its vendor agreements.
The company has not encountered any cash-on-delivery demands or shipping freezes, said Goulding, noting that founder Chang has entered into more than 130 vendor support agreements with key suppliers.
The company’s Canadian subsidiary also filed for and was granted bankruptcy protection by the Ontario Superior Court of Justice (Commercial List) in Toronto.
Goulding noted the retailer’s super-sized stores led to “complicated assortment strategies and triggered inventory management challenges.”
While traditional retailers have been losing out to online shopping, Forever 21 has a strong ecommerce presence, with online sales accounting for 16 percent of all sales, as per court documents.
However, its fast-fashion approach, with basic T-shirts and leggings under $5, may not resonate with the growing number of consumers interested in more eco-friendly fashion choices.
The rise in interest in sustainable clothing has led to the success of companies like ThredUp, an e-tailer for secondhand clothes, and has prompted brands like Levi’s and H&M to introduce eco-conscious collections.
Forever 21’s restructuring plans includes closing underperforming locations, a “back-to-basics” merchandising plan, and strengthening its vendor agreements.
The company has not encountered any cash-on-delivery demands or shipping freezes, said Goulding, noting that founder Chang has entered into more than 130 vendor support agreements with key suppliers.
The company’s Canadian subsidiary also filed for and was granted bankruptcy protection by the Ontario Superior Court of Justice (Commercial List) in Toronto.
More on Majors
The Latest
ColumnistsFeb 20, 2026
Peter Smith: Happiness, Cavemen, and Jewelry SalesSmith encourages salespeople to ask customers questions that elicit the release of oxytocin, the brain’s “feel-good” chemical.
CollectionsFeb 20, 2026
Boucheron’s ‘Faisceaux’ Brooch Heads to V&A MuseumThe brooch, our Piece of the Week, shows the chromatic spectrum through a holographic coating on rock crystal.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
IndependentsFeb 19, 2026
Bailey’s Fine Jewelry Co-Founder ‘Mama Ann’ Bailey Dies at 100Raised in an orphanage, Bailey was 18 when she met her husband, Clyde. They opened their North Carolina jewelry store in 1948.
Weekly QuizFeb 19, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsFeb 19, 2026
Material Good Opens Third Location Material Good is celebrating its 10th anniversary as it opens its new store in the Back Bay neighborhood of Boston.
Events & AwardsFeb 19, 2026
The Original Miami Beach Antique Show Returns in MarchThe show will be held March 26-30 at the Miami Beach Convention Center.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
AuctionsFeb 18, 2026
Joanna Carson’s Jewels Head to AuctionThe estate of the model, philanthropist, and ex-wife of Johnny Carson has signed statement jewels up for sale at John Moran Auctioneers.
PodcastsFeb 18, 2026
Episode 2: Jewelry Trends & Does the Red Carpet Matter?Are arm bands poised to make a comeback? Has red-carpet jewelry become boring? Find out on the second episode of the “My Next Question” podcast.
Policies & IssuesFeb 18, 2026
Community for Ethical Jewelry Looks for Executive DirectorThe organization is seeking a new executive director to lead it into its next phase of strategic growth and industry influence.
Events & AwardsFeb 18, 2026
DCA to Host Gemstone Selling Education Session at IJO EventThe nonprofit will present a live, two-hour introductory course on building confidence when selling colored gemstones.
TrendsFeb 17, 2026
A Bit of Jewelry for the Year of the HorseWestern wear continues to trend in the Year of the Fire Horse and along with it, horse and horseshoe motifs in jewelry.
SourcingFeb 17, 2026
Colored Gemstone Experts Talk Tariffs, Trends in TucsonAlthough the market is robust, tariffs and precious metal prices are impacting the industry, Stuart Robertson and Brecken Branstrator said.
GradingFeb 17, 2026
Dr. George Rossman, Former GIA Governor, Dies at 81Rossman, who advised GIA for more than 50 years, is remembered for his passion and dedication to the field of gemology.
CrimeFeb 13, 2026
JSA Offering $10K Reward in Nancy Guthrie Case Guthrie, the mother of “Today” show host Savannah Guthrie, was abducted just as the Tucson gem shows were starting.
IndependentsFeb 13, 2026
97-Year-Old New Mexico Jewelry Store To CloseButterfield Jewelers in Albuquerque, New Mexico, is preparing to close as members of the Butterfield family head into retirement.
CollectionsFeb 13, 2026
A ‘Rosebud’ Necklace for Valentine’s DayPaul Morelli’s “Rosebud” necklace, our Piece of the Week, uses 18-karat rose, green, and white gold to turn the symbol of love into jewelry.
MajorsFeb 13, 2026
JFC Announces New BeneficiariesThe nonprofit has welcomed four new grantees for 2026.
MajorsFeb 12, 2026
These 8 Saks Fifth Avenue Stores Are ClosingParent company Saks Global is also closing nearly all Saks Off 5th locations, a Neiman Marcus store, and 14 personal styling suites.
CollectionsFeb 12, 2026
British Museum Raises $5M to Keep Jewel Linked to Henry VIII, Katherine of AragonIt is believed the 24-karat heart-shaped enameled pendant was made for an event marking the betrothal of Princess Mary in 1518.
SourcingFeb 12, 2026
‘Cotton Candy’ Necklace, 35-Carat Kunzite Win 2025 ‘Buyer’s Choice’ AwardsThe AGTA Spectrum and Cutting Edge “Buyer’s Choice” award winners were announced at the Spectrum Awards Gala last week.
Events & AwardsFeb 12, 2026
Kering Opens Entries for 2026 Sustainability-Focused AwardThe “Kering Generation Award x Jewelry” returns for its second year with “Second Chance, First Choice” as its theme.
TrendsFeb 11, 2026
Halle Berry’s Retro Engagement Ring Is a Sapphire-Set StunnerSourced by For Future Reference Vintage, the yellow gold ring has a round center stone surrounded by step-cut sapphires.
MajorsFeb 11, 2026
Francesca’s Files for Chapter 11 Bankruptcy AgainThe clothing and accessories chain announced last month it would be closing all of its stores.
CollectionsFeb 11, 2026
Zales Turns Sweethearts Into Jewelry for Valentine’s Day CollectionThe “Zales x Sweethearts” collection features three mystery heart charms engraved with classic sayings seen on the Valentine’s Day candies.
TechnologyFeb 11, 2026
Gemvision Symposium 2026 Slated for AprilThe event will include panel discussions, hands-on demonstrations of new digital manufacturing tools, and a jewelry design contest.
