Forever 21 Files for Bankruptcy for the Second Time in Six Years

The fast-fashion retailer struggles with declining mall traffic, online competition, and shifting consumer trends as it begins winding down U.S. operations.

Forever 21's U.S. operating company has filed for Chapter 11 bankruptcy, marking its second bankruptcy filing since 2019.
The company plans to conduct liquidation sales at its approximately 350 U.S. stores while seeking a buyer for some or all of its assets.
Forever 21 cites challenges including competition from online retailers like Shein, rising operational costs, and changing consumer preferences.
International stores and operations remain unaffected, and the brand's intellectual property is still owned by Authentic Brands Group.
Once a leader in fast fashion, Forever 21 has seen its store count drop significantly from its peak of 800 global locations in 2016.