Up to date on March eleventh, 2025
Should you’ve bought a Ceaselessly 21 in your native mall, you may need to store there quickly — it may very well be on the chopping block. The fast-fashion big hasn’t but filed for chapter, however sources say it’s imminent. In accordance with Bloomberg, Ceaselessly 21 is frantically looking for a purchaser and planning to shut 200 shops. USA Right now 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 inexpensive, fashionable clothes within the Nineteen Eighties. The chain shortly turned a fast-fashion favourite amongst youthful shoppers. 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 buying — 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. Right now, 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 targets, together with discovering a purchaser. The official line as of February 2025 was this quote obtained by USA Right now:
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 last choices have been made concerning the result of the method or the variety of shops that could be closed.
In late-February and early-March, stories of retailer closures in Pennsylvania, Connecticut, and California have surfaced. In accordance 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.
Cash and investing recommendation from Catherine Brock:
That doesn’t essentially imply the tip for the Ceaselessly 21 model, nevertheless. 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 right this moment. After which there’s the Lord & Taylor saga. Lord & Taylor, as soon as a top-end division retailer, has been offered a number of instances to consumers 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 attainable 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 worldwide pandemic adopted by an prolonged inflationary interval have expedited the demise of mall visitors and the shift to on-line buying. 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 mentioned Ceaselessly 21 had expanded too shortly simply as shoppers turned away from mall buying. 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 traders. 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 are usually not distinctive. JCPenney filed for chapter in 2020, additionally asserting plans to shut 200 shops. Later that yr, 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 mentioned it will shut 27 shops. This can be a small quantity in comparison with the chain’s whole retailer rely 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 will even say goodbye to at the very least one Kohl’s retailer.
Analysts largely agree on what’s occurring with these massive retailers: Bodily shops are costly, competitors is hard, and extra shopper are staying residence to buy. I’d love for readers to weigh in on this. Have your buying habits modified within the final 10 years? How usually are you buying in shops? While you store on-line, are you favoring totally different shops than you’ll store in particular person? Tell us within the feedback.