Fast-fashion retailer Forever 21’s U.S. division filed for Chapter 11 bankruptcy on Sunday for the second time in six years, struggling with declining mall traffic and increased competition from online retailers. The company announced plans to hold liquidation sales at its stores while also pursuing a court-approved sale of some or all of its assets.
If the sale is successful, Forever 21 stated it may shift away from completely closing down operations and instead pursue a going-concern transaction. The company confirmed that its U.S. stores and website will remain open and continue serving customers, while its international stores will remain unaffected.
Forever 21 reported its estimated assets between $100 million and $500 million in a bankruptcy filing with the District of Delaware. The company also listed liabilities ranging from $1 billion to $5 billion, with creditors numbering between 10,001 and 25,000.