US fashion chain Forever 21 seeks protection from creditors

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.