Forever 21 files for bankruptcy in the US again

The institution said it would behaviour liquidation income astatine its stores and that it was seeking a purchaser for immoderate oregon each of its assets.

Forever 21 isn't adjacent chill capable to beryllium anymore.

The retailer's US operating institution filed for bankruptcy Sunday - for the 2nd clip successful six years - successful a tribunal successful Delaware, citing fierce contention from overseas accelerated manner retailers. It marks the extremity of an epoch for a covering marque that introduced galore teens to accelerated fashion.

The institution said successful a statement that its "stores and website successful the United States volition stay unfastened and proceed serving customers" arsenic it implements an "orderly wind-down" of its concern successful the country. It added that it would behaviour liquidation income astatine its stores and that it was seeking a purchaser for immoderate oregon each of its assets.

Brad Sell, the company's main fiscal officer, said successful the statement: "We person been incapable to find a sustainable way forward, fixed contention from overseas accelerated manner companies... arsenic good arsenic rising costs, economical challenges impacting our halfway customers and evolving user trends."

Forever 21 has been incapable to support up with Chinese e-commerce giants specified arsenic Shein and Temu, particularly arsenic online buying boomed during the Covid-19 pandemic. The institution is besides delicate to President Donald Trump's tariff hikes connected Chinese imports into the United States.

Forever 21 archetypal filed for Chapter 11 bankruptcy successful 2019 and subsequently unopen down 200 stores. A fewer months later, a squad consisting of promenade operators Simon Property Group and Brookfield Properties and marque absorption steadfast Authentic Brands Group bought Forever 21 for $81 million. That allowed the retailer to support operating with a smaller retail footprint.

But years later, the outlook remained bleak.

Forever 21 joins a agelong database of companies closing stores successful the US. Last year, large US retailers announced much than 7,300 store closures, up 57% from 2023, according to Coresight Research. These included Walgreens (WBA) and CVS (CVS).

Forever 21 presently has much than "540 locations globally and online," according to its website. At the clip of its archetypal bankruptcy filing, it had 800 locations worldwide.

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