Forever 21 Files for Bankruptcy Again, Announces U.S. Store Closures Including Atlas Park Location
Forever 21 has filed for bankruptcy for the second time, resulting in the closure of all 350 U.S. stores, including its only Queens location at The Shops at Atlas Park in Glendale. The retailer, burdened with $1.58 billion in debt, has faced financial struggles, losing over $400 million in the past three years, according to court filings.
Competition from online retailers like Shein and Temu, which benefit from a trade law loophole allowing duty-free entry for goods valued under $800, has intensified Forever 21’s challenges.
The Atlas Park store at 80-40 Cooper Ave. is set to close on March 30, along with other NYC locations, including stores at Penn Station, Times Square, Kings Plaza in Brooklyn, and Staten Island Mall. The company also permanently closed its Queens Center Mall location in 2023 as part of a broader downsizing effort.
This is Forever 21’s second bankruptcy filing, following a Chapter 11 filing in 2019, after which the company was acquired by Authentic Brands Group, Simon Property Group, and Brookfield Property Partners. Despite ongoing efforts to find a buyer, no viable deal has been reached.
As closures begin, liquidation sales will start immediately at all affected locations, offering customers the chance to grab merchandise at discounted prices before stores close their doors for good.
