Forever 21 Faces Second Bankruptcy, Potential Nationwide Store Closures

The fast-fashion retailer is expected to shutter up to 200 stores and lay off hundreds of employees as it prepares for a likely Chapter 11 filing.

Forever 21 is reportedly preparing to file for Chapter 11 bankruptcy for the second time, with liquidation or a potential sale being explored.
The company plans to close at least 200 of its 350 U.S. stores, with unprofitable locations being targeted for closure.
Forever 21's downtown Los Angeles headquarters will close, resulting in over 350 corporate layoffs, including senior staff transitions to remote work.
Increased competition from online fast-fashion retailers like Shein and Temu, coupled with high operating costs, has strained the company's viability.
Forever 21's intellectual property, owned by Authentic Brands Group, may retain value and could be licensed to other retailers even if stores close.