Forever 21’s Second Bankruptcy: Will Louisiana Malls Lose Another Retail Giant?

Forever 21 Files for Bankruptcy Again—What It Means for Louisiana Stores

Forever 21, a once-dominant force in fast fashion, has filed for bankruptcy protection for the second time in six years. Sadly the retailer is expected to shutter its U.S. operations as liquidation sales begin at its more than 350 locations nationwide.

The company cited fierce competition from online fast-fashion giants Shein and Temu as a key factor in its downfall according to cnbc.com. Court filings reveal that Forever 21 has been searching for a buyer for months, engaging with over 200 potential bidders, but no viable deal has materialized. There are only 6 Forever 21s left in Louisiana since its initial bankruptcy closed several mall and stand-alone stores statewide.

Forever 21 has been a staple in malls across Louisiana and there may be hope 1 location will remain in operation. Lake Charles, JCPenney has a Forever 21 at JCP. JCPenney and Forever 21 combined to create a new organization, Catalyst Brands. Under this umbrella, there are six iconic retail banners aimed at celebrating the essence of American fashion. It's not clear as to whether or not this retail union will stay in place, but we are crossing our fingers, that it will remain.

The bankruptcy comes after Forever 21 struggled to recover from its first filing in 2019, followed by the COVID-19 pandemic and rising inflation. Despite efforts to cut costs and partner with Shein in 2023, the company failed to regain financial stability. Now, its parent company, Sparc Group, is winding down operations, leaving the future of its Louisiana locations uncertain.

While all of Forever 21's U.S. stores are expected to close, the brand may survive through its international business and e-commerce platforms. However, another major retailer's departure could significantly blow Louisiana shopping centers already facing retail declines.

Stay tuned for updates on specific store closures in Louisiana as more details emerge.