Popular fashion brand Forever 21 files for bankruptcy in the US

Forever 21 may be closer to shutting down in the US. The brand's operating company has filed for bankruptcy protection.

In a statement, the firm said its US stores and website will remain open. They are starting the process of winding down operations.

Once popular with young women, Forever 21 now struggles to attract customers. Rising prices and online shopping have hurt sales.

The company first filed for bankruptcy protection in 2019. Investors later bought it through a joint venture.

Brad Sell, the CFO, stated they can't find a sustainable path forward. Competition from foreign fast-fashion brands is tough. Rising costs and economic challenges also impact their core customers.

The firm plans liquidation sales at its stores. Some or all assets may be sold in a court-supervised process.

If a sale is successful, they might not fully wind down operations. Chapter 11 protection allows time to reorganize debts or sell parts of the business.

Forever 21's shops and e-commerce platforms outside the US are safe. These are operated by other license-holders and won't be affected by this filing.