Forever 21 has initiated Chapter 11 bankruptcy proceedings in the United States while the apparel company’s operations in Asia are continuing without disruption, as per a report. The firm has attributed the US bankruptcy to rising costs and increased competition, leading to the planned closure of all North American stores.
The brand’s presence in several Asian countries is maintained through franchise agreements, ensuring ongoing operations. In the Philippines, a joint venture with SM Retail, which launched Forever 21 in the country in 2010, is managing the brand. Joan del Rosario, head of operations for Forever 21 Philippines has said that the retailer remains operational in various SM malls, including those in Manila, Cebu, and Davao in the Philippines.
Forever 21 also made a return to the Chinese market in 2022, initially through online platforms like VIPshop and Pinduoduo, and later expanding to Alibaba’s Tmall. This re-entry follows previous attempts to establish a presence in China, with earlier ventures in 2008 and 2011 ending in 2009 and 2019, respectively.
However, the brand has exited other Asian markets, closing stores in Thailand in 2018 and South Korea in 2020. Forever 21 has confirmed that its international e-commerce and non-US stores will continue their regular operations.
