Forever 21 is closing all of its U.S. stores following its second bankruptcy filing in six years. The main reasons for the closure are intense competition from international fast fashion brands like Shein and Temu, rising operational costs due to inflation, economic difficulties, shifting consumer preferences toward online shopping, and the disadvantage caused by a trade law loophole (the de minimis exemption) that allows some foreign competitors to avoid import duties, giving them a price advantage. Despite attempts to find a buyer and restructure, the company could not secure a deal to continue its U.S. operations, leading to an "orderly wind-down" and permanent closure of its 354 U.S. locations by early May 2025. However, its international stores will remain open, and the brand's intellectual property is owned by Authentic Brands Group. Forever 21's decline also reflects a loss of brand identity and relevance amid fast-changing fashion trends and retail landscapes.