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American Retailer Cites Lack of Tariffs as Reason for Its Demise

March 18, 2025

Tuesday, March 18, 2025

On Tap Today

  • Forever no more: Forever 21 has filed for bankruptcy, citing a lack of tariffs on low-priced foreign apparel as the main reason for its demise.

  • Mixed-use webinar: Thursday, join JLL and Kastle experts to explore data-driven strategies for boosting profits and tenant synergy. Sign up

  • Connectivity webinar: Tips for optimizing your office with smart tech and seamless connectivity for a smooth return-to-work. Sign up

Editor’s Pick

The apparel and mall-staple retailer Forever 21 has filed for bankruptcy once again. If this sounds familiar, it’s because the company previously filed for bankruptcy in 2018, driven largely by the declining popularity of American malls. At that time, Forever 21 was acquired for $81 million by a consortium including Authentic Brands, Brookfield Property Partners, and Simon Property Group. Their hope was that keeping the retailer alive would help maintain foot traffic and stave off the mass exodus of mall tenants. However, this plan did not work as intended. In 2023, Jamie Salter, the CEO of Authentic Brands, remarked that buying Forever 21 was “probably the biggest mistake I made.”

This time, Forever 21’s fate will likely be different. So far, no investors have stepped in to purchase its assets or leases. Instead, the company plans to liquidate its 350 locations, with operations expected to wind down between May 27 and June 10.

In a statement, the company’s CFO offered his perspective on its struggles: “While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends.”

President Trump has made eliminating the de minimis exemption a key part of his trade policy. In February, he issued an executive order ending the practice that allows foreign companies to ship goods under $800 without tariffs. However, just four days later, he reinstated the rule to give Customs and Border Protection time to prepare for the increased workload. With Forever 21’s bankruptcy underscoring the impact of the de minimis rule on American retailers, the White House may renew efforts to address the issue.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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