Forever 21 has filed for bankruptcy protection for a second time as traffic in U.S. shopping malls fades and competition from online retailers like Amazon, Temu and Shein intensifies
ByMICHELLE CHAPMAN AP business writer
Forever 21 has filed for bankruptcy protection for a second time as traffic in U.S. shopping malls fades and competition from online retailers like Amazon, Temu and Shein intensifies.
F21 OpCo, which runs Forever 21 stores, said late Sunday that it will wind down the business in the U.S. under Chapter 11 bankruptcy protection while determining if it can continue as a business with a partner, or if it will sell some or all of its assets.
“While we have evaluated all options to best position the company for the future, we have been unable to find a sustainable path forward, given competition from foreign fast fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin,” Chief Financial Officer Brad Sell said in a statement.
The de minimis tax exemption lets shipments headed to U.S. businesses and consumers valued at less than $800 to enter the country tax free and duty free.
Forever 21 stores in the U.S. will hold liquidation sales and the webs