Forever 21’s demise isn’t a cautionary tale about one brand’s missteps. It’s a glimpse into the fragility of an industry built on overproduction, exploitation, and disposability.
Once the undisputed king of the American mall, Forever 21 is now facing liquidation in the U.S., filing for bankruptcy for the second time in six years. This time, it isn’t simply the strain of changing consumer tastes or the burden of excessive real estate; it’s the hyper-speed dominance of ultra-fast fashion that has rewritten the rules of retail. The company’s demise underscores a stark reality: the breakneck speed of trend-churning and the ultra-low prices that defined the fast-fashion model have become an unsustainable arms race, one that even its pioneers can’t seem to win. Or at least, that’s how it seems on the surface.
While Forever 21’s U.S. operations may be shutting down, the brand itself, for now, will live on through its international stores and online, with its intellectual property remaining under Authentic Brands Group. There’s also a chance new operators could revive its presence in the U.S. in the future.
“We are receiving lots of interest from strong brand operators and digital experts who share our vision and are ready to take the brand to the next level,” Jarrod Weber, global president of lifestyle at Authentic Brands Group, said in a statement. “Our U.S. licensee’s decision to restructure its operations does not impact Forever 21′s intellectual property or its international business. It presents an opportunity to accelerate the modernization of the brand’s distribution model, setting it up to compete and lead in fast fashion for decades to come.”
But that optimism may be short-lived and harder to actualize, according to court filings. Forever 21’s restructuring officer Stephen Coulombe pointed to the rise of digital-first rivals Shein and Temu as a major culprit in the company’s downfall. “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 stated. The exemption in question — the de minimis provision — allows imported goods valued under $800 to enter the U.S. duty-free. In practice, this has meant that brands like Shein, which ship directly from overseas factories to individual shoppers, have sidestepped the tariffs that weigh heavily on traditional brick-and-mortar retailers like Forever 21.
Yet, if Shein and Temu have won this round, their victory may prove to be a pyrrhic one. As the regulatory landscape shifts and consumer awareness of sustainability continues to rise, the question isn’t whether Forever 21 could have survived, but whether fast fashion itself is on borrowed time.
The environmental reckoning of ultra-fast fashion
While Forever 21 may have set the bar for fast fashion, Shein’s business model is built on an unprecedented level of speed and volume. The company reportedly adds thousands of new styles daily, responding to social media trends in real time. This on-demand approach has enabled it to outpace competitors like Forever 21, Zara, and H&M, but at an environmental cost that is staggering. According to recent research, Shein emitted 16.7 million total metric tons of carbon dioxide in 2023 — more than that produced by four coal power plants in a year. The vast majority of its garments are made from synthetic fibers like polyester, which shed microplastics into waterways and are derived from fossil fuels.
Shein has attempted to counteract criticism with pledges to reduce greenhouse gas emissions by 25 percent by 2030 and to reach net-zero by 2050. However, sustainability experts remain skeptical. Without addressing the fundamental issue of overproduction, these goals are more about optics than actual impact, said a report from the Changing Markets Foundation.
Despite mounting concerns over fast fashion’s impact on the planet, Shein’s dominance suggests that price still trumps sustainability for the majority of consumers. The company was valued at $66 billion in early 2024, making it one of the most valuable fashion retailers in the world. It has expanded into resale, launched eco-conscious collections, and introduced recycling initiatives — moves seemingly aimed at offsetting its environmental reputation. Yet these programs pale in comparison to the sheer scale of its output.
There are signs, however, that consumers are beginning to reconsider. A 2024 ThredUp Resale Report found that the secondhand clothing market is expected to grow three times faster than the overall apparel market in the next five years, with younger shoppers driving demand for resale. Additionally, brands like Reformation, Stella McCartney, and Ganni — known for prioritizing sustainable practices — have reported record sales growth, suggesting that shoppers are increasingly looking for alternatives to disposable fashion.
The path forward
While consumer behavior is a critical part of the equation, regulatory action may be the only force strong enough to rein in ultra-fast fashion’s environmental impact. Lawmakers in the U.S. and Europe have begun taking steps to address the industry’s unchecked growth. The European Commission’s Ecodesign for Sustainable Products Regulation aims to impose strict guidelines on textile production, targeting durability, recyclability, and material composition. In the U.S., the push to close the de minimis loophole is gaining bipartisan support, with calls to impose tariffs on direct-to-consumer shipments from companies like Shein and Temu.
These regulatory shifts could mark a turning point, forcing fast fashion brands to either reform or face financial penalties. But as history has shown, the industry is nothing if not adaptable. The real question is whether fast fashion’s biggest players will evolve in a way that meaningfully prioritizes sustainability — or simply find new loopholes to exploit.
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