Forever 21 Files for Bankruptcy Again and Shuts Down U.S. Operations

The fast-fashion retailer cites rising costs, competition from foreign rivals, and shifting consumer trends as it closes all U.S. stores while maintaining international operations.

Forever 21 has filed for Chapter 11 bankruptcy for the second time in six years, with plans to wind down all U.S. operations.
The company will close its approximately 350 U.S. stores and conduct liquidation sales, while the website remains temporarily operational.
International stores and intellectual property owned by Authentic Brands Group are unaffected and may continue under licensing agreements.
Forever 21 attributes its struggles to competition from online fast-fashion retailers Shein and Temu, which benefit from the de minimis import tax exemption.
The retailer's liabilities are reported to range from $1 billion to $10 billion, while assets are estimated between $100 million and $500 million.