The retail industry continues to struggle with yet another major retailer filing for bankruptcy today.
Forever 21, the trendy fashion retailer, has filed for bankruptcy for the second time in six years, signaling the closure of all its U.S. locations, including 10 stores across North Carolina. The company’s financial troubles have been mounting, with losses exceeding $400 million over the past three fiscal years. Despite attempts to rebound, rising competition from foreign fast-fashion companies, economic challenges, and shifting consumer trends have led to its downfall.
Forever 21 operates in 43 states. North Carolina will lose all 10 of its stores, contributing to the retailer’s nationwide closures.
In a statement, Chief Financial Officer Brad Sell explained, “Following the conclusion of our strategic review and after careful deliberation, we made the decision to file for Chapter 11 to implement a court-supervised marketing process… and, in the absence of such an arrangement, an orderly wind down of operations.”
The company struggles to compete with global fast-fashion brands such as Temu and Shein, many of which benefit from pricing advantages that Forever 21 can’t match. “We have been unable to find a sustainable path forward,” Sell continued, noting the financial and operational challenges.
With no viable buyer in sight, Forever 21’s North Carolina customers will soon be left without the iconic fashion brand as the retailer exits the U.S. market.
North Carolina locations closing:
- Northlake Mall: 9801 Northlake Mall Drive Space #201, Charlotte, NC
- Concord Mills: 8111 Concord Mills Blvd, Ste #XQA, Concord, NC
- Streets at Southpoint: 6910 Fayetteville Rd., Suite #105, Durham, NC
- Cross Creek Mall: 425 Cross Creek Mall #TA-04, Fayetteville, NC
- Four Seasons Town Centre: 410 Four Seasons Town Centre, Space #111, Greensboro, NC
- Jacksonville Mall: 353 Jacksonville Mall, Suite L7, Jacksonville, NC
- Carolina Place: 11025 Carolina Place Parkway, Pineville, NC
- Crabtree Valley Mall: 4325 Glenwood Ave #1093, Raleigh, NC
- Independence Mall: 3500 Oleander Dr. Ste 1069, Wilmington, NC
- Hanes Mall: 3320 Silas Creek Pkwy #DL450, Winston-Salem
It has been a tough few months for the retail industry, with several major retailers filing for bankruptcy including Party City, Big Lots and Joann.
