Forever 21 Considers Liquidation Amid Second Bankruptcy Talks

The fast-fashion retailer is exploring options, including store closures and liquidation, as it struggles to secure a buyer and navigate growing competition.

• Forever 21 is reportedly preparing for a second Chapter 11 bankruptcy filing and is in discussions with liquidators, according to multiple sources.
• The retailer plans to close nearly 200 stores, but liquidation of all 350 locations is a possibility if no buyer emerges.
• Forever 21's financial struggles are attributed to competition from online retailers like Shein and Temu, as well as declining profitability and rising costs.
• The brand is owned by Authentic Brands Group, which plans to retain ownership of its intellectual property regardless of the bankruptcy outcome.
• Forever 21's ongoing challenges highlight the difficulties traditional retailers face in adapting to a rapidly evolving retail landscape dominated by e-commerce.

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