From CNBC: 2025-03-17 14:32:00

Forever 21 filed for bankruptcy protection for the second time, blaming Shein and Temu for its downfall. The retailer is closing U.S. operations but open to bids. It struggled after emerging from its first bankruptcy, facing new competition and challenges. The owner tried to counter Shein by partnering, but that wasn’t enough.

The company’s bankruptcy was fueled by increased competition and supply chain challenges. It generated $2 billion in revenue in fiscal 2021 but suffered losses in the last three years. Forever 21 currently owes $1.58 billion in loans and over $100 million to clothing manufacturers. The company’s struggles led to its demise.

Forever 21’s international stores and website will continue operating despite the U.S. liquidation. Authentic Brands Group owns the brand’s intellectual property and is seeking new operators. The company’s restructuring doesn’t affect its international business. There is still interest from brand operators to revive the brand’s presence.

Despite once being a leader in fast fashion, Forever 21 faced financial struggles that led to its second bankruptcy filing. The company owes significant amounts in loans and is looking for new operators. After its first bankruptcy, it enjoyed a brief period of success before facing new challenges and competition.



Read more at CNBC: Forever 21 files for second bankruptcy, blames Shein and Temu