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National retailer closing all Ohio locations after filing for bankruptcy, blaming Shein and Temu for its demise

National retailer closing all Ohio locations after filing for bankruptcy, blaming Shein and Temu for its demise

Sav McKee

Some things can’t last Forever.

Forever 21, the national retail chain known for affordable clothing, filed for Chapter 11 bankruptcy for the second time in six years on Sunday. This time, they’re planning on closing all locations in the United States.

The fast-fashion chain blamed other fast fashion e-commerce sites Shein and Temu for their demise. In the court filing, Stephen Coulombe said Forever 21 was “materially and negatively impacted” by Shein and Temu, specifically for their use of the “de minimis exemption,” which means goods valued under $800 can be shipped into the U.S. without import duties.

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“Certain non-U.S. online retailers that compete with the Debtors, such as Temu and Shein, have taken advantage of this exemption and, therefore, have been able to pass significant savings onto consumers,” Coulombe wrote in court documents. “Consequently, retailers that must pay duties and tariffs to purchase product for their stores and warehouses in the United States, such as the Company, have been undercut.”

Forever 21 is heading towards outright liquidation in the United States, but its international stores and website are expected to keep operating.

All 350 locations are expected to close soon, with 9 of them being in Ohio. This means the Forever 21 at Tuttle Crossing in Dublin will soon close, but an official date has yet to be announced.

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