For the second time in six years, fashion chain Forever 21 has filed for bankruptcy. Only its US operations are affected. The retailer is suffering from competition from e-commerce.
International branches not affected
Forever 21 has again started so-called Chapter 11 proceedings in the US, a form of debt protection. Competition from ultrafastfashion from China became fatal to the retailer. The company has already started a major clearance sale in its some 350 US shops and is said to be working on a relaunch, closing shops and selling parts. The retailer stresses that only its US operations have been affected: its nearly 200 international stores, operated by licensees, remain unaffected.
The brand also filed for bankruptcy in 2019. In early 2020, it was acquired by a consortium around Authentic Brands Group, which holds the brand rights. The retailer once had shops in the Benelux, in Antwerp, Brussels, Amsterdam and Rotterdam, but they closed years ago.
