Forever 21, once the go-to store for trendy and affordable clothing for teenagers, has recently faced major financial struggles leading to its second Chapter 11 bankruptcy filing. The fast fashion retailer, known for its quickly changing inventory and low prices, has been unable to compete with online competitors like Shein and Temu.
Originally founded in 1984, Forever 21 quickly rose to prominence as a popular shopping destination for young consumers. The company’s rapid expansion and ability to stay on top of the latest fashion trends contributed to its initial success. However, as the retail landscape began to shift towards online shopping, Forever 21 found itself struggling to keep up.
The turning point for Forever 21 came when the company was bought out by licensing firm Authentic Brands Group and real-estate companies Simon Property Group and Brookfield Property Partners. Despite efforts to restructure and revamp the brand, Forever 21 ultimately found itself facing a second bankruptcy filing.
WSJ breaks down the factors that contributed to Forever 21’s downfall, including increased competition from online retailers and changing consumer shopping habits. As the company looks towards the future, it remains unclear what the next steps will be for the once-popular fashion retailer.
What Went Wrong explores the challenges and decisions that led to Forever 21’s decline, shedding light on the struggles faced by a once-thriving company in the fast fashion industry.
Watch the video by The Wall Street Journal
Video “How Forever 21 Went From $4B in Sales to Going Bankrupt Twice | WSJ What Went Wrong” was uploaded on 03/17/2025 to Youtube Channel The Wall Street Journal