Up to date on March eleventh, 2025
For those who’ve obtained a Ceaselessly 21 in your native mall, you may need to store there quickly — it might be on the chopping block. The fast-fashion large hasn’t but filed for chapter, however sources say it’s imminent. In line with Bloomberg, Ceaselessly 21 is frantically looking for a purchaser and planning to shut 200 shops. USA In the present day has additionally reported Ceaselessly 21 will lay off roughly 358 workers and shut its Los Angeles headquarters.
A have a look at Ceaselessly 21
Ceaselessly 21 established its fame by promoting reasonably priced, fashionable clothes within the Eighties. The chain rapidly grew to become a fast-fashion favourite amongst youthful customers. By means of mall growth and its on-line presence, the corporate grew into a world model. Right here’s a have a look at our protection of Ceaselessly 21 through the years:
At its peak, Ceaselessly 21 operated greater than 500 shops worldwide. However altering shopper preferences — the broad shift to on-line purchasing — and stiff competitors — from Temu and Shein — created points for the chain. Monetary struggles led to a 20 led to a 2019 chapter and a rash of retailer closures. In the present day, there are about 350 Ceaselessly 21 shops nonetheless open.
What’s subsequent for Ceaselessly 21
The corporate is working with a restructuring advisor to outline a sustainable path ahead. Decreasing prices and shutting unprofitable shops are key aims, together with discovering a purchaser. The official line as of February 2025 was this quote obtained by USA In the present day:
Ceaselessly 21’s working firm, which is the model licensee within the U.S., continues to discover strategic choices, together with a possible sale, whereas additionally decreasing prices and optimizing its retailer footprint. The efforts are ongoing and no closing choices have been made concerning the result of the method or the variety of shops which may be closed.
In late-February and early-March, reviews of retailer closures in Pennsylvania, Connecticut, and California have surfaced. In line with Fox Enterprise, Sarah Foss, head of authorized at analytics firm Debtwire, predicts Ceaselessly 21 will transfer ahead with a chapter submitting, shutter all shops for good, and liquidate remaining belongings.
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That doesn’t essentially imply the top for the Ceaselessly 21 model, nonetheless. Bear in mind what occurred to Mattress Tub & Past. After struggling for years, the model was bought out of chapter by Overstock. Overstock rebranded itself as Mattress Tub & Past, and the model stays alive on-line in the present day. After which there’s the Lord & Taylor saga. Lord & Taylor, as soon as a top-end division retailer, has been bought a number of instances to patrons with grand intentions of reviving the model. These efforts have failed thus far, however there’s one other one within the works.
Nevertheless, Foss notes that the Ceaselessly 21 model and mental property might not be a part of a chapter liquidation. May this imply a doable reboot by the present proprietor group? Time will inform.
What went incorrect
Ceaselessly 21 seems to be one other retail sufferer of powerful instances. A world pandemic adopted by an prolonged inflationary interval have expedited the demise of mall site visitors and the shift to on-line purchasing. In the meantime, abroad on-line retailers have mimicked Ceaselessly 21’s providing: large choice, fashionable garments, and low-cost costs. These retailers can compete extra successfully than Ceaselessly 21 as a result of they don’t have the burden of 100s of bodily retailer areas.
The final time Ceaselessly 21 went bankrupt
In 2019, Ceaselessly 21 filed for Chapter 11 chapter safety. Then, analysts stated Ceaselessly 21 had expanded too rapidly simply as customers turned away from mall purchasing. In the meantime, H&M and Zara did a greater job getting new stock into their shops and stole market share.
After the primary chapter, Ceaselessly 21 closed greater than 100 shops in 2020. The model was then rescued by a gaggle of buyers. Genuine Manufacturers Group, Simon Property Group, and Brookfield Properties collectively paid $81 million for Ceaselessly 21’s belongings.
The hope was that new management would assist flip issues round, however right here we’re as soon as extra.
A retail shift
Sadly, Ceaselessly 21’s troubles will not be distinctive. JCPenney filed for chapter in 2020, additionally saying plans to shut 200 shops. Later that 12 months, the chain was purchased by Simon Property Group and Brookfield Asset Administration. These names ought to sound acquainted — they’re additionally concerned in Ceaselessly 21. Simon Property Group owns and operates malls. Brookfield is an asset supervisor and property supervisor.
In 2025, JCPenney introduced a “handful” of upcoming retailer closures.
Additionally in 2025, Kohl’s stated it will shut 27 shops. This can be a small quantity in comparison with the chain’s complete retailer depend of 1,150. Ten of the deliberate closings are in California. Alabama, Arkansas, Colorado, Georgia, Idaho, Illinois, Massachusetts, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia can even say goodbye to at the very least one Kohl’s retailer.
Analysts largely agree on what’s occurring with these huge retailers: Bodily shops are costly, competitors is hard, and extra shopper are staying dwelling to buy. I’d love for readers to weigh in on this. Have your purchasing habits modified within the final 10 years? How usually are you purchasing in shops? While you store on-line, are you favoring totally different shops than you’ll store in individual? Tell us within the feedback.
