Popular Mall Fashion Store Likely to Close Across Iowa, Illinois, and Wisconsin

A once-popular fashion retailer is on the verge of closing all of its stores, including existing locations in Iowa, Illinois, and Wisconsin; although many have already been permanently closed. The company’s U.S. operator is preparing to file for bankruptcy again, and unless a buyer steps in, all 350 stores could be liquidated.

Major Layoffs and Headquarters Closure

As part of the restructuring, Forever 21 is laying off 358 employees and closing its Los Angeles headquarters. These layoffs are set to begin on April 21st and include managers, designers, supply chain directors, and top executives. This includes the company’s chief financial and chief merchandising officers. According to reports, remaining employees will transition to remote work.

Forever 21 has stated that the company is looking at ways to reduce costs across operations and optimize their store footprint. That seems to be the go-to slogan for all failing stores and businesses, as there seems to be an increasingly large amount recently. With several locations already announcing closures in multiple states, including California, Connecticut, Washington, Pennsylvania, Idaho, and North Dakota, the fate of many remaining stores remains uncertain.

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What's Coming? A Likely Chapter 11 Liquidation

Industry experts believe that a Chapter 11 bankruptcy liquidation is the most likely outcome, given that no serious buyers have emerged. This would have a significant impact on shopping malls nationwide, many of which have struggled in recent years due to shifting consumer preferences toward online shopping. However, even if Forever 21’s retail stores disappear, the brand itself is likely to survive. Authentic Brands Group, which owns the Forever 21 trademark and intellectual property, has plans to continue licensing the name to other retailers and distributors.

Retail Industry Struggles Continue

Forever 21 is just one of many retailers facing financial difficulties. Since the beginning of 2024, 20 retail companies have filed for Chapter 11 bankruptcy, and at least 25 have had two bankruptcy filings since 2016. According to FoxBusiness, competition from online fast-fashion platforms like Shein and Temu has made things even more difficult for traditional mall-based brands like Forever 21.

While the exact number of Forever 21 store closures in Iowa, Illinois, and Wisconsin remains unclear, shoppers in these states should expect major changes in the coming weeks. If no buyer steps forward, all locations nationwide will likely be shuttered. No matter what happens, Forever 21’s presence in local malls is rapidly disappearing.