Forever 21, a retailer that has sold affordable clothing for men and women since 1984, has filed for Chapter 11 bankruptcy for the second time and will begin closing its U.S. stores, according to a March 16 news release.
The overview
The company plans to wind down its U.S. business while seeking potential buyers or a transition of its assets, according to the release. International stores will be unaffected.
Forever 21 representatives cited increasing competition from foreign fast-fashion brands, rising costs, economic challenges affecting its core customers, and evolving consumer trends as reasons for the bankruptcy. Forever 21 first filed for bankruptcy in 2019.
