USA TODAY contacted Authentic Brands and Catalyst Brands on Wednesday but has not received a response. Forever 21 has faced competition from Chinese online discount retailers Shein and Temu.

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Liquidation sales have begun at the Forever 21 store in Stockton, with signage indicating that all merchandise is marked down by 20% to 50%.

Forever 21 is closing stores as the fast-fashion retailer's U.S. operator is considering bankruptcy, five years after the company escaped Chapter 11, according to multiple reports.

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In 2019 and 2020, the company was sold to Authentic Brands Group, Simon Property Group, and Brookfield Partners for $81 million.

Rather than an outright ban, a more effective approach involves targeted measures that balance trade facilitation, ...

has struggled to compete with Chinese online discount sites Shein and Temu. “This decision was not made lightly,” a Forever 21 spokesperson said in a statement provided to USA TODAY.