Up to date on March eleventh, 2025
If you happen to’ve acquired a Ceaselessly 21 in your native mall, you may wish to store there quickly — it could possibly be on the chopping block. The fast-fashion big hasn’t but filed for chapter, however sources say it’s imminent. In response to Bloomberg, Ceaselessly 21 is frantically looking for a purchaser and planning to shut 200 shops. USA Right this moment has additionally reported Ceaselessly 21 will lay off roughly 358 staff and shut its Los Angeles headquarters.
A have a look at Ceaselessly 21
Ceaselessly 21 established its fame by promoting inexpensive, stylish clothes within the Eighties. The chain rapidly grew to become a fast-fashion favourite amongst youthful customers. Via 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 over time:
At its peak, Ceaselessly 21 operated greater than 500 shops worldwide. However altering client 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. Right this moment, 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. Reducing prices and shutting unprofitable shops are key goals, together with discovering a purchaser. The official line as of February 2025 was this quote obtained by USA Right this moment:
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 lowering prices and optimizing its retailer footprint. The efforts are ongoing and no last selections have been made concerning the result of the method or the variety of shops that could be closed.
In late-February and early-March, studies of retailer closures in Pennsylvania, Connecticut, and California have surfaced. In response to 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 property.
Cash and investing recommendation from Catherine Brock:
That doesn’t essentially imply the tip for the Ceaselessly 21 model, nonetheless. Keep in mind what occurred to Mattress Bathtub & Past. After struggling for years, the model was bought out of chapter by Overstock. Overstock rebranded itself as Mattress Bathtub & Past, and the model stays alive on-line immediately. After which there’s the Lord & Taylor saga. Lord & Taylor, as soon as a top-end division retailer, has been bought a number of occasions to patrons with grand intentions of reviving the model. These efforts have failed to this point, however there’s one other one within the works.
Nonetheless, Foss notes that the Ceaselessly 21 model and mental property might not be a part of a chapter liquidation. May this imply a potential reboot by the present proprietor group? Time will inform.
What went improper
Ceaselessly 21 seems to be one other retail sufferer of robust occasions. A world pandemic adopted by an prolonged inflationary interval have expedited the demise of mall visitors and the shift to on-line purchasing. In the meantime, abroad on-line retailers have mimicked Ceaselessly 21’s providing: large choice, stylish 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 traders. Genuine Manufacturers Group, Simon Property Group, and Brookfield Properties collectively paid $81 million for Ceaselessly 21’s property.
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 usually are not distinctive. JCPenney filed for chapter in 2020, additionally saying 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 stated it might shut 27 shops. It is a small quantity in comparison with the chain’s complete 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 not less than one Kohl’s retailer.
Analysts largely agree on what’s taking place with these huge retailers: Bodily shops are costly, competitors is hard, and extra client 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? If you store on-line, are you favoring totally different shops than you’d store in individual? Tell us within the feedback.
