**Forever 21 to Wind Down U.S. Operations Amid Second Bankruptcy Filing**
Los Angeles-based fast fashion retailer F21 Opco, the licensee of Forever 21 in the U.S., has announced plans to wind down its U.S. businesses while exploring a potential sale of some or all of its assets. The company has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware, marking its second bankruptcy filing in six years.
Brad Sell, CFO of F21 Opco, cited several challenges leading to this decision, including increased competition from foreign fast fashion retailers, rising costs, economic hurdles affecting core customers, and shifting consumer trends. “While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward,” Sell stated. “As we move through the process, we will work diligently to minimize the impact on our employees, customers, vendors, and other stakeholders.”
During the bankruptcy proceedings, all Forever 21 stores in the U.S. will remain open. If a successful sale occurs, the company may shift its strategy from a complete shutdown to a going-concern transaction.
This Chapter 11 filing does not impact Forever 21 locations outside the U.S., as those stores are operated by independent licensees.
