Forever 21’s Collapse: A Cautionary Tale of Trade Policy Failure

Forever 21’s stores are shutting down across America after filing for bankruptcy twice in six years. The company couldn’t keep up with foreign online retailers like Shein and Temu, which flooded the market with ultra-cheap clothes. Many blame a trade rule that lets foreign companies skip taxes on small packages, making it impossible for American stores to compete.

The once-popular mall chain started strong in the 1980s by selling trendy outfits at rock-bottom prices. But while other stores moved shopping online, Forever 21 stuck to its giant stores and slow delivery times. Chinese companies used faster production and social media trends to steal younger shoppers. Now, over 350 U.S. stores face liquidation, leaving thousands without jobs.

Conservatives point out that weak trade policies allowed foreign rivals to dump cheap goods here without playing by the same rules. These companies don’t pay American wages or follow environmental standards, creating an unfair advantage. Forever 21’s collapse shows what happens when Washington fails to protect homegrown businesses from overseas predators.

Mall owners had hoped Forever 21 would bring foot traffic back to struggling shopping centers. Instead, empty storefronts will spread as foreign apps replace brick-and-mortar shops. This shift hurts local economies and erases a piece of American culture—the weekend mall trip. Some argue the government should close tax loopholes and invest in U.S. manufacturing to save retail jobs.

The company’s downfall also highlights a generational divide. Older shoppers miss the days of trying clothes in person, while younger buyers chase instant gratification through apps. Fast fashion’s “wear it once” culture clashes with traditional values of quality and thrift. Conservatives warn this mindset fuels waste and weakens communities built around Main Street businesses.

Though Forever 21’s overseas stores remain open, its U.S. collapse signals deeper problems. American retailers can’t win against foreign giants that ignore fair wages and environmental laws. Without stronger leadership, more household names will vanish—replaced by faceless corporations that prioritize profits over people.

The brand’s second bankruptcy proves even “fast” fashion wasn’t fast enough. Shein releases 10,000 new designs daily, while Forever 21 took weeks. This speed gap, combined with reckless spending on oversized stores, sealed its fate. Critics say the company’s decline mirrors America’s broader struggle to adapt in a global economy.

Some hope the brand will survive through online sales or partnerships, but the damage is done. Forever 21’s story serves as a cautionary tale: when America lets foreign competitors rewrite the rules, everyone loses. Protecting U.S. jobs and businesses must come before cheap T-shirts and endless sales.

Written by Keith Jacobs

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