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Forever 21, the once-dominant fast-fashion empire, has filed for Chapter 11 bankruptcy protection—again. The retailer’s U.S. operator entered Delaware bankruptcy court with a staggering $1.58 billion in funded debt, planning to shutter its 354 U.S. stores unless a last-minute buyer emerges to salvage the business.

Late Sunday, F21 OpCo announced it would begin winding down operations while simultaneously seeking a going-concern sale of its assets. The filing follows years of declining mall traffic, cutthroat retail competition, and relentless inflation—an economic storm that proved too fierce for Forever 21 to weather.

The Fast-Fashion Empire Undone

Founded in 1984, Forever 21 was once a titan in the fast-fashion industry, drawing throngs of young shoppers with its trendy and affordable clothing. However, shifting consumer habits, e-commerce disruptions, and economic headwinds have chipped away at the company’s foundation.

The retailer’s previous Chapter 11 filing in 2019 led to its acquisition by a consortium including Simon Property Group, Brookfield Property Partners, and Authentic Brands Group. But despite the fresh start, the pandemic-induced retail apocalypse and soaring inflation continued to drain its financial reserves.

According to F21’s co-chief restructuring officer, Stephen Coulombe, the company has hemorrhaged more than $400 million over the last three fiscal years, including a staggering $150 million loss in 2024 alone.