Forever 21 Bows Out: How Shein and Temu Crushed an American Fast-Fashion Giant

Once a titan of the fast-fashion world, Forever 21 is now a fading memory, filing for bankruptcy—again. But this time, it’s blaming its downfall on the new kings of ultra-cheap style: Shein and Temu.

The retailer, once a go-to for trendy teens and young adults, is shutting down its U.S. stores, launching liquidation sales, and desperately seeking a buyer. While it’s open for bids, the odds are slim, with no takers so far.

Who Killed Forever 21?

The company claims Shein and Temu played dirty, exploiting a trade loophole that let them ship ultra-cheap fashion straight to American shoppers without paying import duties. Meanwhile, Forever 21 struggled under traditional retail costs, unable to compete with $5 dresses and $3 tops flooding the market.

Former President Donald Trump is already pushing to close this loophole, but for Forever 21, it’s too little, too late.

A Fashion Empire in Free Fall

Forever 21’s collapse follows years of financial struggles, a failed partnership with Shein, and even a desperate plea to landlords for rent cuts—none of which saved the brand. CEO Jamie Salter even admitted buying the company was his “biggest mistake.” Ouch.

The retailer lost over $400 million in three years, including a brutal $150 million just last year. Once pulling in $4 billion a year, it now owes a staggering $1.58 billion in loans and supplier debts.

What’s Next?

While U.S. stores are dying off, Forever 21’s brand might live on—its international operations and online presence remain intact. The company’s owner, Authentic Brands Group, is hunting for new operators to breathe life into what’s left of the name.

The fall of Forever 21 is a stark warning: In the age of fast, cheap, and digital-first fashion, even giants can be crushed.

Is this the end of American fast fashion? Or will someone bring Forever 21 back from the dead?