BHFO, the discount fashion retailer headquartered in Cedar Rapids that helped revolutionize online apparel sales, is closing its doors, company CEO Stacie Sefton confirmed Friday, Oct. 31.
“It is with a heavy heart we are announcing the closure of BHFO, Inc.,” Ms. Sefton said in an emailed statement. “Economic pressures like inflation affecting overall operating and shipping costs, interest rates and other challenges have impacted our decision to continue business online. We want to express our deepest gratitude to our employees, customers and vendors for your loyalty these past 23 years. It has been an incredible journey and we are very proud of what our team has accomplished.”
A total of 46 employees will be impacted by the decision, according to a notice posted to the Iowa Worker Adjustment and Retraining Notification (WARN) act website. The notification was issued Oct. 28, and the layoffs will be effective Nov. 26.
BHFO had also laid of 32 workers in May.
BHFO (Brittany Hannah Fashion Outlet, named for the Seftons’ two daughters) was founded in 2003 by Jon and Stacie Sefton in the basement of their home, and started as an eBay seller.
The company expanded quickly, and after years of operating out of three warehouses from its former headquarters at 5285 Rockwell Drive NE, BHFO moved in 2014 to a 232,000-square-foot distribution and warehouse facility at 4520 20th Ave. SW – the former home of the Alpha International toy distribution center. That facility also became BHFO’s new headquarters.
At the time of the move, BHFO was recognized as one of the nation’s largest online apparel retailers, as well as being eBay’s largest fashion retailer.
And in April 2022, BHFO announced it had entered into an expansive partnership with kathy ireland Worldwide, the lifestyle brand founded by model Kathy Ireland.
In February 2025, Senator Joni Ernst named BHFO as her Small Business of the Week. In addition, the Corridor Business Journal named BHFO one of its Fastest Growing Companies in the Corridor in 2012.
