Is Forever 21 Really Forever?

Photography by Emily King

Forever 21 is the teen retailer that everyone loved, then loved to hate. The mall giant is known for selling fickle trends for cheap, which worked in its prime when it became fashion’s fastest-growing fast fashion retailer, racking up $4.4 billion. Now it’s crumbling into bankruptcy.  

Forever 21 is surprisingly seeded in humble beginnings. The founders, Jin Sook and Do Won Chang came to the United States in 1981 with no savings and an uphill battle ahead. They each worked several jobs to make ends meet until Don noticed "the people who drove the nicest cars were all in the garment business." Three years later, on April 16, 1984, the couple opened Fashion 21 in Highland Park, Los Angeles with their savings of $11,000. The new retailer bought from manufacturers at a discount during wholesale closeouts, realizing a way to sell trendy clothing and accessories for the lowest price possible—fast fashion. 

The success came quick, totaling $700,000 in sales during their first year of business. Their consumer base expanded as the couple opened new storefronts every six months, and by 2013, there were over 480 in the U.S. with a $3.7 billion revenue. The name was changed to Forever 21 to show their merchandise is "for anyone who wants to be trendy, fresh and young in spirit." In 2014, the company expanded with menswear, plus size clothing, and home products. At this point, Jin Sook was approving over 400 designs a day to be processed and sold. 

Forever 21 became a favorite mall spot for American teenagers. It was chock full of the latest trends and every accessory under the sun. The company peaked in 2015, racking in $4.4 billion in global sales. The Changs became one of America’s wealthiest couples with a net worth of $5.9 billion that same year. Talk about the American Dream. 

So, what happened?

It’s no secret that consumers are preferring online shopping rather than in-person purchases. When Forever 21 filed for bankruptcy on September 30, they cited declining mall traffic as their “most significant” hurdle, relying too heavily on traditional brick and mortar practices. They’re no longer the fastest fast fashion anymore. With competitors emerging like Fashion Nova, Dolls Kill, and other Instagram-based brands with massive followings and influencer promotions, buying and selling is quicker than ever before. According to a March 2019 survey from Business Insider, “millennials make 60 percent of their purchases online and overall prefer online shopping over going to a physical store.” Forever 21 didn’t keep up with the times and fell short.  

Shifting attitudes around fast fashion play a role in the company’s struggle as well. More teenagers and young adults, Forever 21’s main consumer base, are becoming more environmentally and ethically conscious. According to ThredUp’s 2019 resale report, there was a 15 percent increase in consumers who prefer to buy from environmentally conscious brands between 2013 and 2018. One in three Gen Zers and 77 percent of Millennials will buy second hand this year. Online thrifting sources such as Depop are also beginning to fill teens’ closets. 

There’s still hope that Forever 21 might live on, however. The difference between them and other similar retailers that filed for bankruptcy in recent years, namely Wetseal, Delia’s, and Aeropostale, is that they’re still privately owned by the original family and their debt isn’t spread throughout private equity firms. This gives them more control as they try to get back on their feet. 

In a news release, Lina, the Chang couple’s daughter, says the bankruptcy is "an important and necessary step to secure the future of our company, which will enable us to reorganize our business and reposition Forever 21." While the company will be downsizing in U.S. storefronts, a release on their customer email subscription says the remaining stores will “continue to operate as usual, while the Company [sic] takes positive steps to reorganize the business so we can return to profitability and refocus on delivering incredible styles and fashion you love for years to come.” They assert, “This does NOT mean we are going out of business… We are confident this is the right path for the long-term health of our business.” 

If Forever 21 should take anything from this situation, it’s that modern teenagers’ priorities have changed. They now find their consumer autonomy in purchasing ethically, and they prefer to shop online- especially from Instagram. Is Forever 21 forever? That’s up to them.