Forever 21 Files for Bankruptcy Again, Plans U.S. Shutdown

The fast-fashion retailer will close all U.S. stores while seeking buyers for its assets, with international operations remaining unaffected.

Forever 21 has filed for Chapter 11 bankruptcy for the second time in six years, citing competition from online retailers, rising costs, and declining mall traffic.
The retailer will permanently close all 354 U.S. stores in two waves by May 1, 2025, with liquidation sales ongoing.
Forever 21's liabilities are estimated between $1 billion and $10 billion, while its assets are valued at $100 million to $500 million.
International stores, operated by licensees, are not included in the bankruptcy and will continue normal operations.
Authentic Brands Group, which owns Forever 21's intellectual property, may license the brand to other operators, potentially keeping it alive in some form.