Fast fashion has entered our routines in such an easy way that it’s almost frightening. Basically because it’s simple, accessible, trendy, and fits perfectly with our craving to wear new clothes and accessories practically every day without that meaning a clear expense for our wallets. Companies like Shein, Amazon, or Temu have become leaders in this market niche and are gaining more and more followers. However, behind the paradise of wearing new clothes every week and having our closets full of items we might never wear again, there is a model shaking up the traditional retail market.
Physical stores are struggling to survive against competition that not only moves faster, but reinvents itself every day, discount coupons, free shipping days, free returns, and even clothing packs where the outfit is ready to wear. And of course, how can a traditional store compete against that giant? Many brands have been dragged by this fast fashion whirlwind, forcing them to close their doors forever. One example is one of the most iconic brands in the United States, Forever 21, which is not going through its best moment.
What is Forever 21
One of the most well-known brands in the country, legendary for being part of the fast fashion world since 1984. After decades of being a go-to place for low-cost clothing, the brand has confirmed the closure of one of its most emblematic stores amid a new bankruptcy process (the second in six years), as the brand has not been able to keep up with low-cost giants and follow their market pace.
What’s happening with Forever 21
According to court documents, the company F21 OpCo (as it is known for tax purposes) filed for bankruptcy with a total debt of $1.58 billion.
They are now carrying out an inventory liquidation and asset sale plan while trying to keep the online store and some other physical branches afloat, but we still don’t know whether this process, which is also being supervised by a court, will be enough.
The rise and fall of this icon
800 stores around the world, synonymous with youthful, accessible, and rebellious fashion, but, in 2019 something went wrong, and the company entered bankruptcy for the first time, closing hundreds of stores and exiting key markets like Europe and Asia. Although it tried to reinvent itself and reconnect with the market, it never fully recovered.
Forever 21 seeks a buyer
That’s right, F21 has entered liquidation and is now looking for a buyer after evaluating all options to better position the company, but no sustainable solution has been found due to the strong competition they face.
A change of era in fast fashion
What’s happening with Forever 21 is not an isolated case, but the reflection of a deep transformation in the fashion industry. Brands that once dominated shopping malls are losing ground to agile, digital models focused on shopper convenience. Meanwhile, platforms like Shein and Temu continue gaining market share, driven by a strategy of low prices, overwhelming variety, and marketing aimed directly at younger generations.
In fact, Forever 21’s CFO, Brad Sell, was clear and stated that they have not been able to compete against the extremely low prices of these platforms and that the legal loophole of the de minimis exemptions has managed to kick traditional retailers out of the market (since these foreign companies don’t pay taxes).
What do these platforms have?
It’s not just the price, it’s the speed, the way they connect with consumers, and the fashion revolution they bring: more sizes, new clothing patterns, infinite catalogs, and very short shipping times. It’s understandable that stores haven’t been able to keep up with this rise.
One of the most well-known companies is about to say goodbye, and it’s very difficult to keep up with such a fast and volatile market. The era of traditional fashion giants has come to an end, and someone else is already claiming the “iron throne.”