Forever 21 Files for Bankruptcy Again, Signaling End for U.S. Operations

The fast-fashion retailer plans liquidation sales while seeking a buyer for its assets as it struggles with online competition and declining mall traffic.

Forever 21 has filed for Chapter 11 bankruptcy for the second time in six years, citing competition from online retailers and shifting consumer trends.
The retailer plans to liquidate its U.S. stores and assets while maintaining operations temporarily as it explores a potential sale.
Forever 21’s international stores, operated by other licensees, are not affected by the bankruptcy filing and will continue normal operations.
The brand, once a mall staple, has faced challenges from declining foot traffic, rising costs, and competition from fast-fashion giants such as Shein and Temu.
Forever 21 listed assets between $100 million and $500 million and liabilities between $1 billion and $10 billion in its bankruptcy court filings.