Forever 21 files for bankruptcy–again
FILE-A Forever 21 store stands in Herald Square in Manhattan in New York City. (Photo by Drew Angerer/Getty Images)
Forever 21 has filed for bankruptcy for a second time in the last several years as the store chain grapples with changes in the industry and dwindling sales.
What does this latest bankruptcy filing mean for Forever 21?
Dig deeper:
Forever 21 filing for Chapter 11 bankruptcy again means a likely liquidation for the retailer, which was unable to find a buyer for its roughly 350 U.S. stores. FOX Business reported that the company will also go through a court‑supervised sale and marketing process for some or all of its assets.
The retailer noted that it was affected by declining customer traffic at malls and competition from online retailers, FOX Business reported, citing Reuters.
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In February, when talks of Forever 21’s bankruptcy filing was publicized, Bloomberg reported that the company planned to close roughly 200 stores as it attempted to find a possible buyer and financial restructuring.
Forever 21 also dealt with bankruptcy previously in 2019 when the company closed more than 150 of its 534 stores and sold the remaining locations.
What is the Forever 21 brand known for?
The backstory:
Forever 21 was founded in Los Angeles in 1984 by South Korean immigrants and gained popularity with young consumers searching for trendy and affordable clothing. In 2016, the retailer had 800 stores worldwide, with 500 of them in the U.S.
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According to FOX Business, Forever 21 is currently owned by Catalyst Brands, an entity formed on Jan. 8 through the merger of Forever 21's previous owner, Sparc Group, and JC Penney, a department store chain owned since 2020 by mall operators and Simon Property Group.
The Source: Information for this story was provided by FOX Business, Reuters, Bloomberg, and CNBC. This story was reported from Washington, D.C.