Forever 21 Files for Second Bankruptcy, Begins U.S. Shutdown

The fast-fashion retailer cites competition from online rivals, rising costs, and changing consumer trends as it winds down U.S. operations while seeking a buyer for its assets.

Forever 21 filed for Chapter 11 bankruptcy on March 16, 2025, marking its second bankruptcy in six years.
The company will close all U.S. stores and conduct liquidation sales, while its international stores and intellectual property remain unaffected.
Forever 21's liabilities are estimated between $1 billion and $10 billion, with assets valued between $100 million and $500 million.
The retailer attributes its struggles to competition from online fast-fashion giants like Shein and Temu, which benefit from duty-free import exemptions.
Forever 21's intellectual property owner, Authentic Brands Group, plans to modernize the brand's distribution model and continue licensing it internationally.