Forever 21 Gets Executed by Chinese Fast-Fashion as 350 Stores Get Viciously Liquidated…

Pack it up, Forever Yungin’s—Forever 21 is officially cooked. After filing for bankruptcy (again), the fast-fashion relic is shutting down all U.S. stores and liquidating what’s left of its inventory. In short, the company is blaming Shein and Temu for its demise, because apparently, selling $5 crop tops isn’t as profitable when your competitors can sell them for $3 with a double side of lead LOL.

(Source: Giphy) 

For more context, Forever 21’s co-chief restructuring officer (a title that basically screams “the guy in charge of turning off the lights”) pointed to the de minimis exemption—a trade loophole that lets overseas retailers ship packages under $800 into the U.S. without paying import duties. 

And naturally, Shein and Temu abuse the hell out of this, meaning they can undercut U.S. retailers on price while still making a profit. Meanwhile, Forever 21 had to actually pay duties, stock inventory in physical stores, and deal with landlords charging mall rent like it’s still 2005. So yeah, to be fair, it’s hard to compete when your rivals don’t have to play by the same rules. But even still, if you thought Forever 21 was some thriving empire before Shein showed up, well, have you even graduated high school yet? 

(Source: CNBC) 

See, even without Shein and Temu dishing out the Ghengis Khan treatment, Forever 21 was circling the drain. For instance, the company filed for bankruptcy in 2019, barely made it out alive, then got wrecked by COVID. Not to mention it has racked up over $1.5 billion in loans and owes $100 million to suppliers in China and Korea—all while, the owner literally called buying the company “the biggest mistake I’ve made”. So you’re telling me he’s having ragrets? 

Now with that said, at its peak, Forever 21 was pulling in $4 billion a year, but fast fashion changed, and it didn’t. Instead of adapting, it kept churning out the same cheap clothes while Gen Z moved on to trendier, faster, and even cheaper options. So given this, is this actually the end for Forever 21? Well, not exactly.

(Source: Giphy) 

The brand itself isn’t dead—just its U.S. stores. Authentic Brands Group (the company that owns the Forever 21 name) is still hoping to license it out to online operators or international retailers. Translation: You’ll still see Forever 21 on Shein-tier websites, but don’t expect to walk into a physical store ever again. For now, liquidation sales are happening at 350+ locations, meaning this is my kid sister's last chance to buy a $7 bodycon dress before it all gets shipped off to a discount bin in TJ Maxx.

Bottom line, the story is as follows: Forever 21 couldn’t keep up with the modern fast-fashion landscape. Shein and Temu exploited a system loophole, cashed checks and snapped Forever 21’s neck. But, while blaming Chinese e-tailers makes for a nice excuse, the grand scheme of the situation is that the company failed because it decided to get its Intel on (read: refuse to evolve). 

(Source: Giphy) 

For now, it's sad to see a nostalgic symbol of my middle school days end, but just take this as another lesson to keep tabs on the companies in your portfolio who aren’t keeping up with the sign of the times. Not everything lasts forever, no matter how much you want it to. In the meantime, place your bets accordingly and stay safe and stay frosty, friends! Until next time…

P.S. You know that feeling when an insider sells $2.5 million shares of a chip stock that’s “supposed” to be the next Nvidia? If you don’t, then you need to join Stocks.News premium asap to get the first-hand look at these massive insider transactions before the rest of the retail world catches on. Spoiler: The stock has soared 400% over the last 12 months—so why in the hell is the Chief Technology Officer of this high-flying stock dumping his bags now? 

Stocks.News holds positions in Intel as mentioned in the article.