EditorsDec 18, 2025
Terry Chandler Looks Back on 40 Years of Opportunity, Change, and FriendsChandler got his start at Michelson Jewelers and has served as DCA president and CEO since 2001. He will retire at the end of the month.
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
WatchesDec 18, 2025
Bob’s Watches to Open Store in New York’s JFK AirportThe boutique is slated to open this week inside Terminal 8, offering pre-owned Rolex watches and more to international travelers.
Lab-GrownDec 18, 2025
Kira Jewels Debuts Custom Lab-Grown Diamond Jewelry ServiceThe lab-grown diamond grower now offers custom engagement and fashion jewelry through its Kira Custom Lab Jewelry service.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
CrimeDec 17, 2025
Man Pleads Not Guilty to Swallowing Fabergé PendantThe special-edition egg pendant ingested in a New Zealand jewelry store was recovered after a six-day wait.
Weekly QuizDec 11, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsDec 17, 2025
2025 Jewelry Rewind: The Best Piece of the Week PicksAssociate Editor Natalie Francisco plays favorites with Piece of the Week, selecting a standout piece of jewelry from each month of 2025.
CollectionsDec 17, 2025
Lucy Hale Stars in Jacquie Aiche’s Holiday CampaignThe “Love and Desire” campaign is inspired by the magic that follows when one’s heart leads the way, said the brand.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
GradingDec 17, 2025
SSEF Announces 2025 Scholarship WinnersTwo awardees will receive free tuition for an educational course at the Swiss lab, with flights and lodging included.
AuctionsDec 16, 2025
Suzanne Belperron, JAR Shine in Sotheby’s First Auctions at New HQSotheby’s held its first two jewelry sales at the Breuer building last week, and they totaled nearly $44 million.
Events & AwardsDec 16, 2025
TJS Now Accepting Scholarship Applications for 2026Winners will receive free registration and lodging for its fourth annual event in Detroit.
ColumnistsDec 16, 2025
Beyond Unboxing: Creative Reveals to Drive Reach and EngagementHere are six ideas for making more engaging content for Instagram Reels and TikTok, courtesy of Duvall O’Steen and Jen Cullen Williams.
Events & AwardsDec 16, 2025
Diamonds Do Good Names 2026 Award RecipientsThe honorees include a notable jewelry brand, an industry veteran, and an independent retailer.
CrimeDec 15, 2025
Men Receive Life Sentences in Home Invasion Murder of Jeweler Carlos Jose Hernandez and Joshua Zuazo were sentenced to life without the possibility of parole in the 2024 murder of Hussein “Sam” Murray.
Policies & IssuesDec 15, 2025
Sara Yood Named Co-Chair of RJC Standards CommitteeYood will serve alongside Eduard Stefanescu, the sustainability manager for C.Hafner, a precious metals refiner in Germany.
IndependentsDec 15, 2025
M.S. Rau to Open Store in AspenThe New Orleans jeweler is also hosting pop-up jewelry boutiques in New York City and Dallas.
AuctionsDec 12, 2025
13.54-Carat Paraíba Tourmaline Sets Records at Christie’sSet in a Tiffany & Co. necklace, it sold for $4.2 million, the highest price and price per carat paid for a Paraíba tourmaline at auction.
CollectionsDec 12, 2025
Piece of the Week: Oscar Heyman’s Sphene RingTake luxury gifting to new heights this holiday season with the jeweler’s showstopping 12-carat sphene ring.
Events & AwardsDec 12, 2025
IGI Jewelry Design Contest Now Accepting SubmissionsThis year's theme is “Unveiling the Depths of the Ocean.”
TrendsDec 11, 2025
Pinterest 2026 Trend Report: Brooches, Bold Gold, Cool BlueIn its annual report, Pinterest noted an increase in searches for brooches, heirloom jewelry, and ‘80s luxury.
GradingDec 11, 2025
GIA to Offer Origin Determination for 3 More GemstonesStarting Jan. 1, customers can request the service for opal, peridot, and demantoid garnet.
IndependentsDec 11, 2025
Look Inside Day’s Jewelers’ Ninth StoreThe 111-year-old retailer celebrated the opening of its new location in Salem, New Hampshire, which is its third store in the state.
MajorsDec 11, 2025
Americas Gold Releases New Gold Chain CatalogThe new catalog features its most popular chains as well as new styles.
AuctionsDec 10, 2025
Francis Ford Coppola’s Watch Sells for $10.8MThe filmmaker’s personal F.P. Journe “FFC” prototype was the star of Phillips’ recent record-setting watch auction in New York.
WatchesDec 10, 2025
There’s A New Rolex Boutique in MiamiThe new location in the Design District pays homage to Miami’s Art Deco heritage and its connection to the ocean.
SurveysDec 10, 2025
Consumer Confidence Drops in November Inflations, tariffs, and politics—including the government shutdown—were among consumers’ top concerns last month.
SourcingDec 10, 2025
NAJA Announces Details for 2026 ‘Ace It’ Winter Conference“Longtime favorite” presenters, as well as first-time speakers, will lead talks and workshops at the annual event in Tucson next year.
