Forever 21 debacle signals eroding power of malls, shift in consumer tastes

Forever 21, which said e-commerce made up 16 per cent of its sales, saw its revenue drop to $3.3 billion last year

Forever 21, the California retailer that helped popularize fast fashion in the United States with its bustling stores and $5 tops, said on Sunday night that it would file for bankruptcy, a sign of the eroding power of shopping malls and the shifting tastes of young consumers.

The private, family-held company capped months of speculation about its restructuring efforts by saying that it would cease operations in 40 countries, including Canada and Japan, as part of a Chapter 11 filing. It will close up to 178 stores in the United States and up to 350 overall.

Forever 21 said that it would