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Forever 21 Shutters All NY and NJ Locations

ByMaya Harborlight

Fast-fashion retailer Forever 21 will close all of its New York and New Jersey locations by early May as part of a nationwide shutdown following its second bankruptcy filing in six years. The closure affects more than 15 stores in New Jersey and 20 in New York, including prominent locations in Times Square, Jersey City, and suburban shopping malls throughout both states.

Store liquidation sales have already begun, with most locations scheduled to close by March 30 and the remaining stores shuttering by May 1, according to PIX11. Customers with gift cards will be able to use them until April 15, but all sales are final during the liquidation period.

Photo Source: Tupungato/DepositPhotos

Regional Impact of the Closures

The closures will impact major shopping hubs across both states. In New York City, prominent locations including the company’s flagship stores at Times Square and near Penn Station will close by March 30. Suburban mall locations in Yonkers, White Plains, West Nyack, and throughout Long Island will also shut down, eliminating what has long been a key destination for teenage shoppers.

In New Jersey, the retailer will exit 15 locations spanning 11 counties. Major shopping centers including Westfield Garden State Plaza in Paramus, Cherry Hill Mall, Newport Mall in Jersey City, and The Mills at Jersey Gardens in Elizabeth will lose what has been an anchor tenant for many years.

The closure timeline varies, with most locations closing by March 30, though stores at Willowbrook Mall in Wayne and Bridgewater Commons will remain open until May 1. “Some stores will close by March 30, while others will shutter before May 1,” the company confirmed in their announcement.

Blaming Foreign Competition

In court filings and public statements, Forever 21 has pointed directly to competition from Chinese e-commerce platforms as a primary factor in its demise. “While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies… as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends,” Forever 21 Chief Financial Officer Brad Sell said in a statement.

The retailer specifically called out Shein and Temu, claiming these companies have exploited a trade law loophole that allows goods valued under $800 to enter the United States without import duties. According to Axios, this “de minimis exemption” has allowed foreign competitors to sell products at significantly lower prices than American retailers who must pay duties and tariffs.

“The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company’s ability to retain its traditional core customer base,” Forever 21’s co-chief restructuring officer Stephen Coulombe stated in court documents.

Part of a Broader Retail Contraction

The Forever 21 closures represent just one part of a massive contraction in physical retail space occurring across the United States. Approximately 15,000 store closures are expected this year, nearly double the 7,325 stores that closed in 2024, according to Coresight Research data cited by Axios.

Several other major retailers are also in the midst of liquidation sales, including Party City, Kohl’s, Macy’s, JCPenney, and Joann. The trend has left shopping malls struggling to fill large vacant spaces as traditional retail anchors continue to disappear.

The regional impact is particularly significant in the New York-New Jersey metro area, where Forever 21 maintained a strong presence in both urban and suburban shopping destinations. The closures will affect approximately 9,200 employees nationwide, though the company has not released specific numbers for the New York and New Jersey workforce.

A Brief Resurgence Before Collapse

After emerging from its first bankruptcy in 2019, Forever 21 enjoyed a brief period of renewed success. The business was acquired by a consortium including Authentic Brands Group, Simon Property Group, and Brookfield Property Partners. In fiscal 2021, it generated $2 billion in revenue and $165 million in EBITDA, demonstrating apparent stability.

However, as CNBC reports, the retailer’s fortunes quickly deteriorated amid inflation, supply chain challenges, shifting consumer preferences, and intensifying competition from online fast-fashion platforms. Over the past three fiscal years, the company lost more than $400 million, including $150 million in fiscal 2024 alone.

Brand May Continue Without Stores

While the physical stores are closing, Forever 21’s international locations will remain open, and the brand itself may continue under new ownership or in different formats. The brand name and intellectual property remain under the ownership of Authentic Brands Group (ABG), which has indicated plans to continue the brand in some form.

“We are receiving lots of interest from strong brand operators and digital experts who share our vision and are ready to take the brand to the next level,” Jarrod Weber, global president of lifestyle at ABG, said in a statement. “Our U.S. licensee’s decision to restructure its operations does not impact Forever 21’s intellectual property or its international business.”

For shoppers in New York and New Jersey, however, the familiar storefronts that have been a mainstay in regional malls for decades will soon disappear, marking the end of an era for a once-dominant player in American fast fashion.

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