Overview
- Forever 21 has filed for Chapter 11 bankruptcy for the second time in six years, with plans to wind down all U.S. operations.
- The company will close its approximately 350 U.S. stores and conduct liquidation sales, while the website remains temporarily operational.
- International stores and intellectual property owned by Authentic Brands Group are unaffected and may continue under licensing agreements.
- Forever 21 attributes its struggles to competition from online fast-fashion retailers Shein and Temu, which benefit from the de minimis import tax exemption.
- The retailer's liabilities are reported to range from $1 billion to $10 billion, while assets are estimated between $100 million and $500 million.