Forever 21 Files For Bankruptcy Again, Plans US Wind-Down
Forever 21’s US operating company has filed for bankruptcy for the second time in six years, citing intense competition from foreign fast fashion brands and shifting consumer trends. The retailer announced plans for an “orderly wind-down” of its US business while keeping stores and its website operational for now. Liquidation sales will be conducted, and the company is seeking buyers for its assets.
The brand has struggled to compete with Chinese e-commerce giants like Shein and Temu, which have dominated the online fast fashion market. Rising costs, economic challenges and merchandising missteps have further weakened Forever 21’s position.
Forever 21 first filed for Chapter 11 bankruptcy in 2019, leading to store closures and a buyout by Simon Property Group, Brookfield Properties, and Authentic Brands Group. However, the brand failed to regain momentum.
Despite the bankruptcy, Forever 21 may continue in some form through licensing agreements, though analysts suggest it will be a diminished version of its former self.
