Forever 21’s United States operator, F21 OpCo, has filed for Chapter 11 bankruptcy for the second time in six years, signaling the closure of all its remaining U.S. stores. The company currently has 350 stores in the United States.
The fashion-forward retailer initiating an orderly wind-down of its operations in the country due to intense online competition from retailers like Shein and Temu. There has also been a lack of mall traffic where a lot of Forever 21 retail locations are.
The bankruptcy filing includes a court-supervised effort to find a buyer for some or all of its assets. If a successful sale occurs, Forever 21 could pivot away from a full shutdown and continue operations in a reduced capacity.
