Jamaine Punzalan

Article (news)

Agence France-Presse

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1742263646627f21.jpg" style="width:960px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left">Forever 21/Facebook </span></span></span></div><p>Apparel retailer Forever 21 said Monday it commenced voluntary bankruptcy proceedings in the United States, beginning plans for an &quot;orderly wind down&quot; of US stores, while pursuing in parallel a possible sale.</p><p>The fast-fashion giant, in concert with its lenders, plans liquidation sales at US stores &quot;while simultaneously conducting a court‑supervised sale and marketing process for some or all of its assets,&quot; according to a press release from F21 OpCo LLC, operator of the brand in the United States.</p><p>The move marks the second Chapter 11 bankruptcy reorganization in six years by Forever 21, following a 2019 filing that significantly shrank the chain&#x27;s store fleet.</p><p>The chain currently has 540 stores, according to its website.</p><p>The company&#x27;s American stores &quot;will remain open and continue serving customers&quot; throughout the process, while locations outside the United States, which are operated by other licensees, are not part of the bankruptcy plan, the company said.</p><p>Founded in Los Angeles in 1984 by South Korean husband-and-wife Do Won and Jin Sook Chang, Forever 21 became a ubiquitous presence in shopping malls across the United States, offering teen customers imitations of high-fashion brands at rock bottom prices.</p><p>But Neil Saunders, managing director of GlobalData, said the company had been buffeted in recent years with &quot;dual headwinds&quot; from a weak apparel market and stiff competition from cheap Chinese marketplaces.</p><p>&quot;Forever 21 has not helped itself through these challenges: merchandising and the assortment have been lackluster, and the brand has lacked any clear point of view for a long time,&quot; Saunders said in a note.</p><p>&quot;The net result is that more and more customers, especially those at the younger end of the market, have abandoned it.&quot;</p><p>Saunders pointed to the possibility that the brand could endure online through a licensing sale which would likely entail a price that &quot;would need to reflect its now diminished status,&quot; he said.</p><p>© Agence France-Presse</p><div><br/></div><div><br/></div><div><iframe width="1100" height="619" src="https://www.youtube.com/embed/-633_tg5D4M" title="Fast-fashion retailer Forever 21 files for bankruptcy | ANC" frameBorder="0" allowfullscreen=""></iframe></div>

<p>Apparel retailer Forever 21 said Monday it commenced voluntary bankruptcy proceedings in the United States, beginning plans for an "orderly wind down" of US stores, while pursuing in parallel a possible sale.</p>

Apparel retailer Forever 21 said Monday it commenced voluntary bankruptcy proceedings in the United States, beginning plans for an "orderly wind down" of US stores, while pursuing in parallel a possible sale.

Forever 21 files for bankruptcy, plans US liquidation

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Forever 21 files for bankruptcy, plans US liquidation

Agence France-Presse

Published March 18, 2025 10:09 AM PHT

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