Forever 21 is reportedly planning to open some brick-and-mortar stores in China and is seeking a partner with which it can relaunch in the United States.
The fast fashion brand is doing so after ending three previous attempts to enter the China market and after saying in March that it was filing for bankruptcy and winding down its U.S. operations, Reuters reported Thursday (Aug. 28).
Forever 21 is now focusing on China and the U.S., the report said, citing comments made by the owner of the brand’s global intellectual property, Authentic Brands Group, and its partner in China, brand operator Chengdi, at a press event in Shanghai.
In China, the brand is relaunching now and plans to open brick-and-mortar stores in 2026, according to the report.
In the U.S., a notice to customers on Forever 21’s website says that after filing for bankruptcy, it is in the processing of closing stores in the U.S. and that all sales in its U.S. stores and U.S. website are now final.
The notice added that Forever 21 stores outside the U.S. are still operating as usual.
F21 OpCo, the operator of Forever 21 stores and licensee of the brand in the U.S., said in a March 16 press release that the U.S. stores and website would keep serving customers as it wound down its operations.
The company added that Forever 21’s international stores were not affected by the bankruptcy because they are operated by other licensees.
“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, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends,” F21 OpCo Chief Financial Officer Brad Sell said in the March press release.
Authentic Brands announced in February 2020 that it acquired Forever 21 in partnership with Simon Property Group and Brookfield Property Partners. The company said in a press release that it would revitalize the brand and connect with audiences around the world.
