Mall Fashion Store Plans to Close Across Iowa, Illinois, and Wisconsin

It's now official. Forever 21 is planning to close all of its remaining U.S. stores, including those in Iowa, Illinois, and Wisconsin. I had originally reported that the fashion retailer would likely close as their bankruptcy lacked one important thing: a buyer. After weeks of speculation, the once-popular fashion retailer has confirmed it will begin an "orderly wind-down of operations," according to a report from MSN.

Forever 21 has been a staple in shopping malls for decades. But now all 354 remaining stores across the country will close unless an investor steps in at the last minute. That however is looking increasingly unlikely. The company’s U.S. operator is preparing to file for bankruptcy again, making this the second time the brand has faced financial trouble.

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In addition to the store closures, Forever 21 is laying off nearly 700 employees and shutting down its Los Angeles headquarters. Key staff members, including managers, designers, and top executives, will be affected. The remaining employees will transition to remote work during the wind-down process.

The chain has struggled for years, blaming stiff competition from online fast-fashion giants like Shein and Temu. Forever 21’s Chief Financial Officer even acknowledged that the company couldn’t find a sustainable path forward. Not to mention that the chain is reportedly $1.6 billion in debt. That's led to an insane deficit as the brands' assets are only worth between $100 to $500 million.

Forever 21’s decline mirrors the ongoing struggles of other major retailers. Brands like Macy’s, Nordstrom, Party City, JoAnn Fabrics, Kirkland's, and Big Lots; all have announced significant closures in 2025.

While this marks the end of Forever 21’s presence in U.S. malls, the brand itself may continue in some form. Authentic Brands Group, which owns Forever 21’s trademark, plans to license the name to other retailers and distributors. Additionally, Forever 21 websites have not been affected by this bankruptcy. For shoppers across the nation, this news confirms what many feared: another iconic mall staple is closing its doors for good.