Fast-fashion retailer Forever 21’s U.S. operating company on Sunday filed for Chapter 11 bankruptcy for the second time in six years, hamstrung by dwindling mall traffic and mounting competition from online retailers.
The company said it will conduct liquidation sales at its stores while simultaneously conducting a court-supervised sale and marketing process for some or all of its assets.
In the event of a successful sale, Forever 21 said it may pivot away from a full wind down of operations to facilitate a going-concern transaction.
The company said its stores and website in the United States will remain open and continue serving customers, and that its international stores remain unaffected.
Forever 21 listed its estimated assets in the range of $100 million to $500 million, according to a filing with bankruptcy court in the District of Delaware, with liabilities being in the range of $1 billion to $5 billion. The filing also showed creditors in the range of 10,001 to 25,000.
