350+ Forever 21 U.S. Stores Close, No Longer Accepting Gift Cards

Struggling fast-fashion giant Forever 21 is urging customers to redeem gift cards immediately, with all balances set to expire on Tuesday, April 15, 2025, as part of its second Chapter 11 bankruptcy filing in six years. The retailer, once a mall staple, will shutter all 350+ U.S. stores by May 1 unless a buyer emerges, marking a dramatic retreat amid fierce competition from overseas rivals like Shein and Temu.

Key Details for Shoppers

• Gift Cards & Returns: All Forever 21 gift cards and store credits expired after April 15. The company ceased accepting returns, exchanges, and issuing new gift cards on April 14.
• Final Sales: All purchases—online and in-store—are now final. Liquidation discounts of 30–50% are ongoing at remaining locations.
• Store Closures: Locations in Connecticut, California, Pennsylvania, Idaho, and North Dakota have already closed. A full list of closures is available via the store locator.

Bankruptcy and Market Pressures

Forever 21’s parent company, F21 OpCo, filed for Chapter 11 protection in March 2025, citing:

• Foreign Competition: Shein and Temu’s tariff-free advantages under the de minimis exemption (goods under $800 incur no duties).
• Rising Costs: Inflation, supply chain disruptions, and shifting consumer trends toward sustainable fashion.
• Financial Strain: The retailer previously filed for bankruptcy in 2019 and was acquired by Authentic Brands Group, Simon Property Group, and Brookfield Asset Management.

Court documents reveal the company owes $500 million+ to creditors and plans to vacate all leased stores by May 1. Approximately 358 employees were laid off in February, including headquarters staff in Los Angeles.

A Legacy Unraveling

Founded in 1984 by South Korean immigrants Do Won Chang and Jin Sook Chang, Forever 21 revolutionized fast fashion with its trendy, affordable apparel. At its peak, it operated 800+ stores globally and generated $4.4 billion annually. However, rapid expansion, debt accumulation, and the rise of ultra-fast e-commerce competitors eroded its market share.

What’s Next?

While Forever 21’s U.S. operations wind down, its intellectual property remains under Authentic Brands Group. Analysts suggest a potential rebrand or pivot to wholesale partnerships could follow, but the brick-and-mortar empire appears finished.

“Forever 21’s collapse proves the brutal reality for mid-tier retailers,” said retail expert Jeanel Alvarado. “Tariff loopholes and hyper-fast online platforms are rewriting the rules of fashion retail.”

As liquidation sales continue, Forever 21’s demise serves as a cautionary tale of innovation and adaptability in an era dominated by digital-first brands. For loyal customers, the final days to spend gift cards or snag discounted items are here—but the window is closing fast.