The Forever 21 operator in the United States deposited bankruptcy on Sunday, as the clothing company, which has helped spread fast fashion in the United States, is struggling to compete with electronic retailers.
F21 OPCO, the operator, as well as some US subsidiaries, have lodged bankruptcy 11 in the Dlaware bankruptcy court, court documents show. The company reported estimated assets between $ 100 million and $ 500 million and liabilities of $ 1 billion to $ 5 billion. The company also filed bankruptcy in 2019.
Forever 21 found success in the early 2000s that sold cheap fashion factor in young women looking for clothing inspired by designer style at rock prices. At its climax, it had more than $ 4 billion in annual sales and employed more than 43,000 people worldwide in hundreds of stores.
But the retailer expanded very aggressively, just as technology began to increase its activities.
It first deposited for bankruptcy in 2019, closing more than 30 % of its stores in the United States, before acquiring bankruptcy by the Sparc Group, a joint venture between Authentic Brands Group and Simon Property Group, a shopkeeper.
In 2023, Sparc signed an agreement with Shein, the Chinese e -commerce retailer known for Ultralow prices. Shein agreed to buy about one third of Sparc’s shares. According to the agreement, Shein could one day operate in stores at Forever 21 stores, while Forever 21 clothes will be sold on Shein’s site.
Forever 21 did not respond immediately to a request for comments.
