Forever 21 files for Chapter 11 bankruptcy, will keep US stores open for now
F21 OpCo, LLC, the company and licensee of the brand in the U.S., filed a Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware. Although stores will remain open for now, Forever 21, which is headquartered in Los Angeles, said it will hold liquidation sales at its U.S. stores.
The company blamed Covid and changing work patterns for its downfall, but it survived and has big expansion plans.
The company filed for bankruptcy protection Monday in Delaware, adding that there was a stalking horse bidder for its assets.
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