More than 200 brand-name clothing stores in the United States have closed after filing for bankruptcy: Shein and Temu are blamed.

The American youth fashion brand Forever 21 announced the permanent closure of more than 200 stores in the United States, after declaring bankruptcy for the second time in March of this year .

The move is part of an "orderly liquidation" that puts an end to decades of brand expansion in the U.S. market.

Operator F21 OpCo reported that it has voluntarily filed for Chapter 11 bankruptcy in a Delaware state court.

According to the company, the goal is to restructure its business and explore alternatives , including the sale of all or part of its assets, although no transaction has been finalized so far.

Forever 21 attributed the decision to increasing competition from fast-fashion brands such as Shein and Temu , whose digital strategies and aggressive pricing have put pressure on the traditional brick-and-mortar model.

One of the factors that aggravated the financial situation was the use of the "de minimis" exemption, which allowed goods under $800 to be imported tariff-free, favoring competitors based in China.

This exemption was eliminated by President Donald Trump in April 2025.

During its peak period, the chain operated more than 500 stores in the United States and nearly 800 worldwide. It currently had 350 locations before the new closure process.

In 2019, Forever 21 had already filed for bankruptcy in an attempt to reorganize its global structure. At that time, the business was acquired by Sparc Group , a conglomerate that still controls the brand.

Despite the contraction in the US market, Forever 21 maintains its international presence through franchises.

In those countries, local businesses operate the stores, meaning the closures will not directly affect operations outside the United States.

The company also confirmed that its website and intellectual property will remain operational.

*This content was written with the assistance of artificial intelligence, based on publicly available information released to media outlets. It was also reviewed by a journalist and an editor.