The Forever 21 operator in the United States submitted bankruptcy on Sunday as the clothing company, which helped to make fast fashion popular in the United States, struggles to compete with online retailers.
F21 OPCO, the operator, as well as some American subsidiaries, submitted a bankruptcy of Chapter 11 to the Delaware bankruptcy court, according to judicial documents. The company mentioned its estimated assets between $ 100 million and $ 500 million, and obligations from $ 1 billion to $ 5 billion. The company also applied for bankruptcy in 2019.
Forever 21 found success in the early 2000s that were sold cheaply produced fashion that appealed to young women looking for clothing inspired by designer styles, at rock floor prices. At its peak, it had more than $ 4 billion in annual turnover and it had more than 43,000 people in hundreds of stores worldwide.
But the retailer expanded too aggressively, just when the technology started to increase its business.
For the first time, it presented bankruptcy in 2019 and closed more than 30 percent of its stores in the United States, before he was purchased by Sparc Group by Sparc Group, a joint venture between authentic brands Group and Simon Property Group, a shopping center, a shopping center.
In 2023, SPARC signed an agreement with Shein, the Chinese e-commerce retailer known for its ultra-row prices. Shein agreed to buy about a third of SPARC shares. According to the agreement, Shein could exploit shop-in-case for a day at Forever 21 Outlets, while the clothing of Forever 21 would be sold on the Shein site.
Forever 21 did not immediately respond to a request for comment.
