Forever 21 has filed for bankruptcy for the second time, leading to the closure of all 350 U.S. stores, including its only location in Queens at The Shops at Atlas Park in Glendale.
The fast-fashion retailer entered bankruptcy with $1.58 billion in debt after losing more than $400 million over the past three years, according to court filings. The company’s financial struggles have been attributed in part to increasing competition from online retailers like Shein and Temu, which benefit from the de minimis exemption—a trade law loophole allowing goods valued under $800 to enter the U.S. duty-free.
The Queens store at 80-40 Cooper Ave. in The Shops at Atlas Park is scheduled to close on March 30, along with other New York City locations, including Penn Station, Times Square, Kings Plaza in Brooklyn, and Staten Island Mall.
Forever 21 previously had a presence at Queens Center Mall in Elmhurst, but that location permanently closed in 2023. Once a popular destination for fast fashion shoppers in Queens, the store occupied a large space in the mall before shuttering as part of the company’s initial wave of closures. Its departure was part of a broader downsizing effort that saw Forever 21 exit several major shopping centers across the country.
This marks the second time Forever 21 has filed for bankruptcy. The company first sought Chapter 11 protection in 2019, securing $350 million in financing before being acquired by a group that included Authentic Brands Group, Simon Property Group, and Brookfield Property Partners. In recent months, the retailer has been searching for a buyer but has been unable to secure a viable deal, according to court documents.
Liquidation sales are expected to begin immediately at the closing stores.
