The operator, as well as some US subsidiaries, filed a lawsuit 11 at the US Bankruptcy Court in Delaware
The American Fast-Fashion Forever 21 retailer 21 filed a request for judicial recovery for the second time, claiming to be harmed by the change in consumer spending and the fierce competition of foreign retailers.
The operator, as well as some US subsidiaries, filed a lawsuit 11 (Chapter 11) at the US Bankruptcy Court in Delaware. The company will implement an ordered settlement of its business in the US, adding that Forever 21 stores abroad are operated by other graduates and are not included in the process.
The company’s chief financial officer, Brad Sell, said that although all the options were evaluated, “we could not find a sustainable path, given the competition of foreign fast-fashion companies, which have been able to take exemptions to reduce the price and margin of our brand.”
He added that increased costs and economic challenges have affected customer demand.
Forever 21 stores and website in the US will remain open and continue to serve customers during the process, the company said.
