Forever 21 files for bankruptcy protection - footwearbiz: Leading site

News

Forever 21 files for bankruptcy protection

18/03/2025
Forever 21 files for bankruptcy protection
Footwear and fashion retailer Forever 21’s US operating company has filed for bankruptcy protection, citing rising costs, economic challenges, and competition from foreign fast-fashion brands. The company stated that its stores and website will remain open while it begins the process of winding down operations.

The retailer plans to hold liquidation sales, and some or all of its assets may be sold in a court-supervised process. A successful sale could allow the company to continue operating in some capacity. This marks the second time Forever 21 has filed for bankruptcy, following a 2019 filing that led to its acquisition by a group of investors.

Forever 21 is currently owned by Catalyst Brands LLC, a company formed in January 2025 through the merger of SPARC Group and JCPenney. Prior to this, it was managed by SPARC Group, a joint venture between Authentic Brands Group and Simon Property Group. In 2023, Shein acquired a one-third stake in SPARC Group.

At its peak in 2016, Forever 21 had 800 stores worldwide, including 500 in the US. Its international operations, managed by licence-holders, will not be affected by the bankruptcy filing.

footwearbiz.com cannot be held responsible for content if the language setting is changed from English.

The translations provided by Google Translate are automated and therefore might not be accurate and may contain incorrect, offensive or misleading language. We offer this facility as a guide only.