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• Forever 21

• U.S. Stocks

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Forever 21

Forever 21 has filed for bankruptcy protection for the second time in six years, blaming competition from fast-fashion rivals Shein and Temu. The retailer plans to shut down its U.S. operations, liquidating its 350+ stores, though it remains open to buyers willing to take over its inventory and stores. The company, which struggled post-pandemic amid high inflation and changing consumer habits, cited Shein and Temu's use of a trade loophole allowing duty-free imports under $800 as a major factor in its downfall. Trump is pushing to close this exemption.

Despite a brief turnaround after its first bankruptcy, Forever 21’s losses exceeded $400 million over three years, with $150 million lost in 2024 alone. The brand’s owner, Authentic Brands Group (ABG), confirmed that Forever 21’s international stores and website will continue operating, and the brand’s intellectual property is not for sale. ABG is seeking new operators to revive the business in the U.S., despite its CEO admitting the acquisition was “probably the biggest mistake” he made. The company owes $1.58 billion in loans and over $100 million to suppliers, primarily in China and Korea.

U.S. Stocks

U.S. stocks rebounded on Monday, extending their recovery from a four-week selloff driven by uncertainty surrounding Trump’s tariff policies and declining consumer confidence. The S&P 500 rose 0.64% to 5,675.12, while the Nasdaq gained 0.31% to 17,808.66, and the Dow advanced 353 points (0.85%) to 41,841.63, supported by Walmart and IBM. Despite the gains, the Nasdaq remains in correction territory, down 11% from its peak. The February retail sales report helped ease investor concerns, showing 0.2% monthly growth, slightly below expectations. Treasury Secretary Scott Bessent downplayed market volatility, calling corrections “healthy”, while analysts warn that Trump’s economic shifts and Musk’s cost-cutting in government may lead to more short-term pain before long-term benefits.

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