F21 OPCOthe company that operates the fashion brand Forever 21 In the United States, he has returned to Declare in bankruptcy. It is the second time that occurs within six years, since in 2019 it already embarked on this process announcing the closure of 350 stores in different cities in the world.
The brand has found difficulties when navigating the digital transformation of the sector and competing in a context increasingly dominated by electronic commerce. Factors such as Growing Fast-Fashion Expansiondriven by Asian giants such as Shein or Temu; he Decrease in influx to shopping centers or inflation and the scenario of economic complexity have also affected their activity.
“We have evaluated all the options to better position the company, but we have not found a sustainable solution”
“While we have evaluated all the options to better position the company for the future, we have not been able to find a sustainable solution, given the competition of Fast Fashion Foreign Companies“, said Brad Sell, financial director of the company, in a statement. He has also alluded to”increase in costs, economic challenges that affect our main clients and the evolution of consumption trends“
Forever 21 will implement a Ordered settlement of your business In the United States, while continuing with its process of search for a buyer for the sale of some or all its assets. The stores and the Forever 21 website will remain open and will continue to attend to customers while the company carries out the process of liquidation of its operations.
In addition, in the statement the company has indicated that Forever 21 stores outside the United States are operated by other licensees and are not included in this bankruptcy statement. These establishments and international electronic commerce pages will continue to operate normally. He also recalled that Authentic Brands Group He is the head of the intellectual property associated with the Forever 21 brand and can license it to other operators.
Forever 21, which years ago helped popularize rapid fashion in the United States, has declared, according to The New York Timesestimated assets between $ 100 and 500 million, and liabilities between 1,000 and 5,000 million.
The brand has welcomed Creditors Contest With a total debt of about 1.6 billion dollars, according to judicial documents.
According to Reutersthe company He has lost about 400 million dollars in the last three years. In addition, according to the data provided for the process, it incurred losses of 150 million dollars in 2024, and estimated losing 180 million in 2025.
Forever 21, founded in Los Angeles in 1984, reached success in the early 2000s selling low -cost fashion with special focus on young women. The brand He registered more than 4,000 million dollars in annual sales and used more than 43,000 people around the world in their 800 stores.
