Another iconic American retailer has fallen. Forever 21, once a staple of shopping malls across the country, has filed for Chapter 11 bankruptcy and announced plans to close all 350 of its U.S. stores, according to an article by AXIOS. This decision marks the end of an era for the fast-fashion giant, which will now shift to an online-only model. While the usual culprits—changing consumer preferences and the rise of e-commerce—play a role, there’s a deeper story here.
Forever 21's downfall isn’t just about fashion trends; it’s about economic realities. While inflation has slowed, it has still taken a significant toll on businesses. Rising labor costs, expensive commercial real estate, and excessive government regulations have made it increasingly difficult for traditional retailers to compete. At the same time, big-box corporations and foreign competitors have gained advantages through lower operating costs and more aggressive supply chains.
This bankruptcy serves as yet another reminder that America's business environment is becoming more hostile to entrepreneurs. Instead of fostering competition, burdensome policies and unnecessary red tape often squeeze out businesses that were once thriving. When a company like Forever 21—one that catered to budget-conscious shoppers—can no longer sustain itself, it raises questions about affordability for everyday Americans.
Forever 21’s pivot to online sales is not surprising. More and more businesses are being forced to abandon physical locations due to the dominance of e-commerce. While technological innovation is a great thing, the rapid shift away from traditional retail isn’t just a natural evolution—it’s been heavily influenced by policy decisions that favor massive corporations over small and medium-sized businesses.
During the COVID-19 lockdowns, big online retailers were allowed to thrive while smaller brick-and-mortar businesses were shut down. Now, we’re seeing the long-term consequences. More empty storefronts, fewer jobs in local communities, and a growing reliance on faceless online conglomerates.
Shopping malls, once a symbol of American culture and economic strength, are disappearing. Stores like Forever 21 were the lifeblood of malls, drawing in millions of young shoppers. With their closures, malls face further decline, affecting thousands of jobs and small businesses that rely on foot traffic. The retail apocalypse isn't just a business issue—it’s a cultural shift.
We should ask ourselves whether this is the kind of economy we want—one where only a handful of massive corporations control the marketplace while small and mid-sized businesses fade away. Consumers may appreciate the convenience of online shopping, but when competition disappears, so does consumer choice.
Forever 21’s bankruptcy is about more than just fashion—it’s about the economic environment that is making it harder for businesses to survive. The retail industry is being reshaped by high costs, shifting consumer habits, and an economic system that increasingly favors the few over the many. If we want to keep American businesses alive, we need policies that promote fair competition, lower costs, and reduce the regulatory burdens strangling companies.
