Not quite Forever 21: Mall retailer shuttering U.S. shops, including Broomfield, Fort Collins

LOS ANGELES — Citing increased competition from foreign online clothing sellers, F21 OpCo LLC, the Los Angeles-based operator of Forever 21’s U.S. chain of mall retail shops, filed for Chapter 11 bankruptcy protection in Delaware this week — the second time in the past six years — and plans to wind down business operations as it seeks to offload its assets. 

That means Forever 21 will shutter its U.S. stores, including five in Colorado. Within the Boulder Valley and Northern Colorado regions, the chain has stores in Broomfield at 51 W. Flatiron Crossing Drive, and in Fort Collins at 215 E. Foothills Parkway.

“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, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin,” F21 OpCo chief financial officer Brad Sell said in a statement. The de minimis tax exemption allows companies to import certain low-value shipments — an order of clothing purchased from Chinese online sellers such as Shein or Temu, for example — into the country without paying some taxes and duties.

Forever 21’s international and online stores are expected to continue operating, according to CNBC, and the brand’s name and intellectual property, owned by Authentic Brands Group, could be used domestically in the future.

A consortium of companies, including Authentic Brands, bought Forever 21’s U.S. operations in 2019 after the company filed for bankruptcy the first time. Authentic Brands Group has a local connection as the owner of Lafayette-based Spyder Active Sports Inc. In February, Authentic licensed the design, manufacturing and marketing of the brand’s ski apparel to Outdoor Collective LLC.

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