Forever 21 took a huge step to complete closure in the US after the company filed for bankruptcy.
As reported by BBC, the firm shared in a statement that its stores and website in the US will remain open till the company proceed its liquidation process.
With the rise of popularity of online shopping and high prices, Forever 21 has been struggling to attract customers for quite a while.
The company first filed for bankruptcy protection in 2019 but a group of investors ended up buying it through a joint venture.
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Brad Sell, the company's chief financial officer said in a statement, noting, "We have been unable to find a sustainable path forward, given competition from foreign fast-fashion companies...as well as rising costs, economic challenges impacting our core customers."
The firm said it would conduct clearance sales at it stores and that most if not all assets would be sold in a court-supervised process.
"In the event of a successful sale, the Company may pivot away from a full wind-down of operations," the Forever 21 rep admitted.
Forever 21's shops outside of the US operates by other license-holders, hence they will not be affected by the bankruptcy filing.
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The fast-fashion retailer was founded in 1984 by South Korean immigrants, and became famous among young people for its trendy clothes, giving competition to fast-fashion giants such as Zara and H&M, with its low prices.
