The fast-fashion chain Forever 21 is facing a new financial crisis after filing for bankruptcy for the second time in six years, leading to the closure of all its stores in the United States. This announcement has raised concerns about the future of its operations in other countries, including Mexico, where the closure of its branch in the Mundo E shopping center has been confirmed.
Second Bankruptcy and Complete Shutdown in the U.S.
Founded in 1984, Forever 21 filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in March 2025. The company announced the closure of its 354 stores in the country due to significant financial losses, competition from brands like Shein and Temu, and rising operational costs.
The company had previously faced bankruptcy in 2019 and was subsequently acquired by Authentic Brands Group and Simon Property Group. However, efforts to revitalize the brand failed to overcome market challenges.
Closure of Forever 21 in Mundo E
Although Forever 21‘s international operations are not directly affected by the U.S. bankruptcy, the closure of the store located in the Mundo E shopping center in Tlalnepantla, State of Mexico, has been confirmed. This closure was announced through social media, generating uncertainty among local consumers.
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Will the U.S. Bankruptcy Affect Mexico?
The situation of Forever 21 in Mexico is comparable to that of other brands that have faced bankruptcies in the U.S. but have maintained successful operations in the country. A notable example is Sears, which filed for bankruptcy in the U.S. in 2018 but continues to operate in Mexico under the control of Grupo Sanborns, owned by Carlos Slim. This separation of operations has allowed Sears Mexico to maintain its presence in the national market.
Similarly, as long as Forever 21 stores in Mexico operate under independent licenses and maintain efficient management, they are likely to continue their operations without being directly affected by the U.S. bankruptcy.
The closure of Forever 21 in the U.S. marks the end of an era for the brand in its home country. However, in Mexico, the situation is different due to the structure of independent licenses. Although the closure of the store in Mundo E has been confirmed, other branches could continue operating normally. Currently, according to the official Forever 21 website, the company has 36 stores operating throughout the country, excluding the imminent closure of the store located in Mundo E.
The experience of brands like Sears suggests that, with proper management, it is possible to maintain successful operations in Mexico despite difficulties in other markets. Will it succeed in the face of the powerful arrival of Chinese stores like Shein and Temu?
