IndependentsMay 09, 2025
Lugano Diamonds CEO Resigns Amid Internal InvestigationMoti Ferder stepped down Wednesday and will not receive any severance pay, parent company Compass Diversified said.
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
CollectionsMay 09, 2025
Pieces of the Week: Marie Lichtenberg’s Collaborations for Mother’s DayLichtenberg partnered with luxury platform Mytheresa on two designs honoring the connection between mothers and daughters.
SourcingMay 09, 2025
Gemfields Resumes Emerald Mining in ZambiaThe miner announced plans to recommence open-pit mining at Kagem.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeMay 08, 2025
Former NYC Jewelry Store Employee Arrested in 2017 Choking Death of Boss Michel Desalles allegedly murdered Omid Gholian inside World of Gold N Diamond using zip ties and then fled the country.
Weekly QuizMay 08, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsMay 08, 2025
5 ‘Superfine’ Met Gala Jewelry MomentsAssociate Editor Lauren McLemore shares her favorite looks from a night of style inspired by Black dandyism.
Supplier BulletinMay 08, 2025
Instappraise Introduces Game-Changing Trifold Appraisal FormatSponsored by Instappraise
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest AdditionSupplier Spotlight Sponsored by GIA
FinancialsMay 08, 2025
Brilliant Earth Notes an Uptick in Engagement Ring Sales in Q1CEO Beth Gerstein discussed the company’s bridal bestsellers, the potential impact of tariffs, and the rising price of gold.
IndependentsMay 08, 2025
Margot McKinney Lands in the U.S. With New BoutiqueThe brand’s first independent location outside of Australia has opened in Beverly Hills, California.
IndependentsMay 08, 2025
Verragio Announces New Regional Sales ManagerCathy Marsh will lead the jewelry company’s efforts in the upper Midwest and western United States.
FinancialsMay 07, 2025
Pandora Posts Strong Q1, Plans for TariffsThe company has multiple strategies for dealing with tariffs, though its CEO said moving manufacturing to the U.S. is not one of them.
ColumnistsMay 07, 2025
The Smart Lab: Building a Seasonal Marketing Strategy for Mother’s Day and BeyondConnecting with your customers throughout the year is key to a successful holiday marketing push.
SourcingMay 07, 2025
Gemfields Says Emerald Sales Improved in Latest AuctionIts commercial-quality emerald sale held last month totaled more than $16 million, up from about $11 million in September 2024.
TechnologyMay 07, 2025
Punchmark’s Latest Podcast Features a Very Special Guest National Jeweler Editor-in-Chief Michelle Graff joined Michael Burpoe to talk tariffs, consumer confidence, and the sky-high price of gold.
AuctionsMay 06, 2025
Harwell Godfrey Reimagines 10-Carat Blue Diamond for Met Gala-Ready BroochDesigner Lauren Harwell Godfrey made the piece as an homage to the 2025 gala’s theme, “Superfine: Tailoring Black Style.”
Events & AwardsMay 06, 2025
Here’s Who Made Jewelers of America’s New ‘20 Under 40’ ListExpanded this year to include suppliers, JA’s 2025 list honors 40 up-and-coming professionals in the jewelry industry.
IndependentsMay 06, 2025
Sissy's Log Cabin Opens New StoreLocated in Fort Smith, it’s the Mid-South jeweler’s first store in Northwest Arkansas.
IndependentsMay 06, 2025
Gunderson’s Jewelers to Be Featured on ‘World’s Greatest’ TV SeriesThe episode about the family-owned jeweler will premiere May 17.
IndependentsMay 05, 2025
Zadok Jewelers Opens Store in AustinThe Houston-based jeweler’s new 11,000-square-foot showroom will include a Rolex boutique.
AuctionsMay 05, 2025
Nancy Astor’s Cartier Tiara Heads to AuctionThe turquoise and diamond tiara hasn’t been on the market since it was purchased by Lord Astor in 1930.
SourcingMay 05, 2025
Crater of Diamonds Yields 4-Carat Brown Diamond“The Duke Diamond” is the largest diamond registered at the Arkansas park so far this year.
TrendsMay 02, 2025
Ring Concierge, Kraft Partner on Mother’s Day Macaroni Necklace The childhood craft of making dried pasta necklaces for Mother’s Day is all grown up as the 14-karat gold “Forever Macaroni” necklace.
CollectionsMay 02, 2025
Piece of the Week: Angely Martinez’s Emerald Promise RingSet with May’s birthstone and featuring an earthworm, this ring is a perfect celebration of spring.
SourcingMay 01, 2025
Tariffs & Colored Gemstones: Relying on Stock, Considering the Ripple EffectThough currently paused, high tariffs threaten many countries where gemstones are mined. Dealers are taking measures now to prepare.
TrendsMay 01, 2025
Amanda’s Style File: 20 Pieces of Emerald Jewelry for MayMay babies are lucky indeed, born in a month awash with fresh colors and celebrated with one of the most coveted colored gemstones.
MajorsMay 01, 2025
Jewelers of America Opens Applications for 2025 ScholarshipsThe deadline to apply for the Seymour & Evelyn Holtzman Bench Scholarship is June 12.
