Fast fashion's Forever 21 files for bankruptcy in U.S.

Thomson Reuters

· Posted: Mar 17, 2025 6:27 AM EDT | Last Updated: 23 minutes ago

Fast-fashion retailer Forever 21's U.S. operating institution connected Sunday filed for Chapter 11 bankruptcy for the 2nd clip successful six years, hamstrung by dwindling promenade postulation and mounting contention from online retailers.

The determination apt means liquidation for the company, which was incapable to find a purchaser for its astir 350 U.S. stores.

The institution said its planetary stores stay unaffected.

Its trademark and intelligence spot — still held by an entity called Authentic Brands Group — may unrecorded connected successful a antithetic form.

Mega-mall epoch ends

The emergence of e-commerce, paired with the dilatory decease of the American mega mall, has been an ongoing headwind for Forever 21. It antecedently filed for Chapter 11 successful 2019 and was bought retired of bankruptcy by Sparc, a associated task betwixt statement proprietor Authentic Brands Group and promenade operators Simon Property Group and Brookfield Asset Management.

Forever 21 said it volition behaviour liquidation income astatine its stores portion simultaneously conducting a court‑supervised merchantability and selling process for immoderate oregon each of its assets.

The institution listed its estimated assets successful the scope of $100 cardinal to $500 million, according to a filing with bankruptcy tribunal successful the District of Delaware, with liabilities being successful the scope of $1 cardinal to $10 billion. The filing besides showed creditors successful the scope of 10,001 to 25,000.

Intellectual spot could unrecorded on

Forever 21 is owned by Catalyst Brands, an entity formed connected Jan. 8 done the merger of Forever 21's erstwhile owner, Sparc Group, and JC Penney, a section store concatenation owned since 2020 by promenade operators and Simon Property Group.

When Catalyst Brands was formed, it said successful a connection that it was "exploring strategical options" for Forever 21.

Authentic Brands volition proceed to ain Forever 21's trademark and intelligence property, which could unrecorded connected successful immoderate form.

Authentic Brands CEO Jamie Salter past twelvemonth called acquiring Forever 21 "the biggest mistake I made."

Founded successful Los Angeles successful 1984 by South Korean immigrants, Forever 21 astatine its tallness was fashionable among young shoppers connected the prowl for stylish but affordable clothing. By 2016, it was operating astir 800 stores globally, with 500 of those successful the United States.