Here’s the last day this bankrupt mall chain takes gift cards

The retail sector has been battered over the last couple of years. From low- and mid-tier fashion brands to high-end luxury retailers, none has been immune to the downturn.

Many iconic brands have filed for bankruptcy, and even more have suffered financial distress that led underperforming locations to close their doors. Even stores with rich history, like Macy’s, JCPenney, and Nordstrom have been affected by changing consumer behavior and forced to close locations.

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Related: Iconic retail brand closing stores nationwide for good (locations revealed)

The 7,325 retail closures of 2024 are just the beginning. By some estimates, 15,000 stores will close in 2025, according to real estate data firm Coresight. 

And that stat was released before all the news of tariffs started to really rattle markets.  

Malls have been hit hard

Some stores have had a presence in nearly every American mall for decades: from Victoria’s Secret and Bath & Body Works, to Claire’s and Build-a-Bear, to fast-fashion stalwarts H&M and Forever 21. 

But changing shopping habits have hit malls hard. Fast-fashion is falling, well, out of fashion, and more consumers now prefer to order online and try on their goods at home. 

More on retail and bankruptcy:

• Walmart store closing, auctioning off laptops and flat screen TVs
• Home Depot CEO sounds the alarm on a growing problem
• Famous restaurant files for Chapter 11 bankruptcy

Customers are also able to find more selection online than they can in stores. Plenty of shoppers don’t enjoy digging through the racks to the find the size or color they’re after. 

Forever 21 is just the latest victim of this trend. The retailer first filed for Chapter 11 bankruptcy in 2019 and shut down 200 stores. 

The company filed a second time in March 2025. The company started closing stores immediately and aims to have all locations closed by May 1. 

“Forever 21 was always a retailer living on borrowed time,” Retail Analyst and Managing Director of Analytics firm GlobalData Neil Saunders told real estate firm CoStar. “Over recent years it has been hit with dual headwinds from a weak apparel market and stiff competition from cheap Chinese marketplaces.” 

Related: Another fast fashion retailer suddenly closing after bankruptcy

Those facts eroded Forever 21’s standing and depleted its market share, said Saunders. “Forever 21 has not helped itself through these challenges: merchandising and the assortment have been lackluster, and the brand has lacked any clear point of view for a long time,” he added. “The net result is that more and more customers, especially those at the younger end of the market, have abandoned it.”

Last chance to use Forever 21 gift cards  

If you happen to have a gift card for Forever 21 in your wallet or stuffed in the back of a kitchen drawer, use it as soon as possible. 

“In connection with the filing, we are beginning the process of closing a number of stores across the U.S,” said Brad Sell, Chief Financial Officer in a statement on the company’s website. 

“Importantly, however, our stores will remain open for the time being, and we will continue to fulfill customer orders placed online,” Sell said. 

He added that the company will “continue to honor customer gift cards and store credit through and including April 15, 2025. The company says it will try to maintain an online presence after that date but all stores will be closed by May 1.

Forever 21 currently has more than “540 locations globally and online,” according to its website, and has no plans to shutter its locations outside of the U.S.

Related: Veteran fund manager unveils eye-popping S&P 500 forecast

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