Stunted by declining mall traffic and growing competition from online retailers, fast-fashion retailer Forever 21’s US operating business filed for Chapter 11 bankruptcy on Sunday for the second time in six years.
After failing to find a buyer for its about 350 US locations, the company is likely to go through liquidation as a result. According to the corporation, its overseas stores will not be impacted, and its US locations and website will continue to operate and serve customers.
The creeping demise of the American mega mall and the growth of e-commerce have been constant challenges for Forever 21. In 2019, it filed for Chapter 11 but was later acquired.
According to a filing with the District of Delaware bankruptcy court, the company’s estimated assets were between US $ 100 million and US $ 500 million, while its liabilities were between US $ 1 billion and US $ 10 billion. Additionally, the application listed between 10,000 and 25,000 creditors.
At its peak, Forever 21, which was founded in 1984 by South Korean immigrants in Los Angeles, was well-liked by youthful consumers looking for fashionable yet reasonably priced apparel. It had about 800 locations worldwide by 2016, 500 of which were in the US.
