Forever 21, once a dominant force in the fast-fashion industry, has filed for Chapter 11 bankruptcy once again. The company’s struggle to keep up with shifting retail trends and declining mall traffic has now led to a second financial collapse. According to CNBC, the retailer may be forced into liquidation after failing to secure a buyer for its 350 remaining stores.
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Retail Fashion Gets Another Blow
The rise of e-commerce, influencer fashion, and shifting consumer habits have slowly suffocated mall-based giants like Forever 21. Once a go-to spot for trendy, affordable fashion, the brand is reportedly struggling to keep up. Back in 2019, Forever 21 filed for Chapter 11 for the first time. That bailout came from Sparc Group, a joint venture between Authentic Brands Group, Simon Property Group, and Brookfield Asset Management Inc.
What Happens to Forever 21 Now?
With no buyer in sight, Forever 21 may shut down entirely. However, parts of the brand could still survive.
The Liquidation Process
In a statement, Forever 21 confirmed that it will conduct a court-supervised store and marketing process while monitoring potential options for its assets. If a buyer emerges, the company could restructure once again. If not, liquidation will continue, leading to the closure of all U.S. locations.
Will Forever 21 Disappear Completely?
While its brick-and-mortar stores may vanish, Forever 21 could still maintain an online presence. In similar cases, brands like Toys “R” Us and Payless went bankrupt but later resurfaced through digital storefronts and licensing deals.
Industry experts suggest that Forever 21’s name could live on under a new owner, but whether it retains its original fast-fashion appeal remains to be seen.