Particle.news
Download on the App Store
49 ARTICLES
·
2mo ago

Forever 21 Files for Bankruptcy Again and Shuts Down U.S. Operations

The fast-fashion retailer cites rising costs, competition from foreign rivals, and shifting consumer trends as it closes all U.S. stores while maintaining international operations.

Image
Shoppers walk into a Forever 21 store at Fashion Valley, an upscale shopping mall on December 13, 2024 in San Diego, California.
A Forever 21 store in New York on Feb. 7, 2025.
FILE - Shoppers walk by a Forever 21 clothing store, Thursday, Oct. 24, 2019, in Tokyo, as the liquidation sale signs are posted on the storefront. (AP Photo/Kiichiro Sato, file)

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.