With cost-saving initiatives failing to make up for significant losses, US operator F21 Opco filed for Chapter 11 bankruptcy in Delaware with around US$1.58 billion ($2.1 billion) in total funded debt, the filing said. Forever 21’s locations outside of the United States are operated by other licensees and aren’t included in the filings.
Forever 21’s US retail operator has filed for bankruptcy after being hit by rising inflation and intense competition in the fast-fashion sector, the second time the brand has entered Chapter 11.
Forever 21 stores, which have attracted droves of young women since the 1980s for cheap, trendy clothing, were hurt by the rising cost of inventory and wages in recent years, its co-chief restructuring officer said in a filing to the US court. Competition from online retailers such as Temu and Shein also put pressure on the company.
