From Yahoo Finance: 2025-04-15 17:56:00

Forever 21’s unsecured creditors face meager recoveries under a restructuring plan, with debts owed to suppliers and vendors only being repaid 3% to 6%. The retailer’s parent company, SPARC Group, was acquired by JCPenney in January, leaving creditors concerned about their financial futures. Entities operating stores outside the U.S. are not affected by the bankruptcy.

The bankruptcy filing, the second in six years for Forever 21, comes with about $1.6 billion in debt. Weak mall traffic and online competition have contributed to the retailer’s struggles. A recent executive order by President Trump ending the de minimis exemption on Chinese imports may help level the playing field for companies like Forever 21.

Authentic Brands Group, owner of Forever 21’s intellectual property, may re-license the brand to keep it alive in the U.S. Despite the uncertain future for the retailer, creditors are left concerned about their financial losses. The ongoing investigation into the JCPenney deal adds to the complexity of the situation.



Read more at Yahoo Finance: Forever 21 creditors face large losses under bankruptcy plan