Forever 21 Files for Bankruptcy for Second Time in 6 Years

It’s the end of an era for Forever 21 customers. 

The operators of the clothing brand that helped usher in the fast-fashion movement in the early 2000s filed for bankruptcy in Delaware on Sunday, CNBC reports.

F21 OpCo, the company behind Forever 21, declared Chapter 11 bankruptcy, making this the second time it filed for bankruptcy, following a filing in 2019.

Through the Chapter 11 case, the company plans to “wind down” its U.S stores with a liquidation sale at its brick-and-mortar shops. Its website will also remain open as the chain liquidates its inventory, according to a press release.

Founded in 1984, Forever 21 gained wide popularity at the turn of the millennium, attracting consumers in search of affordable clothes in line with the trends of the day. By 2013, it had more than 480 stores operating, with revenue at $3.7 billion. Sales peaked in 2015, at $4.4 billion globally.

“While we have evaluated all options to best position the Company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies,“ which have taken advantage of exemptions “undercut our brand on pricing and margin,” Brad Sell, CFO of F21 OpCo, said in a statement.

Forever 21 stores and sites outside of the United States will remain open and are not a part of the filing.