Overview

• Forever 21 has filed for Chapter 11 bankruptcy for the second time in six years, citing competition from online retailers, rising costs, and declining mall traffic.
• The retailer will permanently close all 354 U.S. stores in two waves by May 1, 2025, with liquidation sales ongoing.
• Forever 21's liabilities are estimated between $1 billion and $10 billion, while its assets are valued at $100 million to $500 million.
• International stores, operated by licensees, are not included in the bankruptcy and will continue normal operations.
• Authentic Brands Group, which owns Forever 21's intellectual property, may license the brand to other operators, potentially keeping it alive in some form.