Overview

• Forever 21 is reportedly preparing to file for Chapter 11 bankruptcy for the second time, with liquidation or a potential sale being explored.
• The company plans to close at least 200 of its 350 U.S. stores, with unprofitable locations being targeted for closure.
• Forever 21's downtown Los Angeles headquarters will close, resulting in over 350 corporate layoffs, including senior staff transitions to remote work.
• Increased competition from online fast-fashion retailers like Shein and Temu, coupled with high operating costs, has strained the company's viability.
• Forever 21's intellectual property, owned by Authentic Brands Group, may retain value and could be licensed to other retailers even if stores close.