Forever 21 entered bankruptcy with $1.58 billion (€1,44 billion) in debt, after accumulating losses worth more than $400 million (€365 million) over the last three years, reported Reuters.
According to documents filed in a Wilmington, Delaware bankruptcy court, the company was furhter projected to lose approximately $180 million (€164 million) in 2025.
Forever 21 said it would conduct store closing sales at its stores and that some or all of its assets would be sold in a court-supervised process, as it continues to engage with potential buyers who wish to purchase some or all of its U.S. business. Its international stores remain unaffected by the bankruptcy, with Forever 21’s shops and e-commerce platforms outside of the US being operated by other licence-holders.
Founded in Los Angeles in 1984, Forever 21 was popular among young shoppers for stylish but affordable clothing. At its peak, it employed 43,000 people, operated 800 stores globally (with 500 in the US), and recorded over $4 billion (€3.65 billion) in annual sales, according to court documents.
