Forever 21, once a staple of fast fashion, has filed for bankruptcy protection for the second time. The retailer entered Chapter 11 with a staggering $1.58 billion in debt after racking up over $400 million in losses over the past three years. The company, which lost $150 million in 2024 alone, was projected to bleed an additional $180 million in 2025, according to court documents filed in Wilmington, Delaware.
READ: Forever 21 Files for Bankruptcy
In a statement, F21 OpCo’s Chief Financial Officer, Brad Sell, cited intensifying competition from foreign fast-fashion brands, rising operational costs, and shifting consumer trends as key factors behind the company’s downfall. “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, as well as rising costs, economic challenges impacting our core customers, and evolving consumer trends,” he said.
Forever 21’s bankruptcy will result in the closure of all its U.S. stores, with closing sales already underway. However, the company will honor customer gift cards for the first 30 days of the bankruptcy process.
This isn’t the first time Forever 21 has faced financial turmoil. The retailer previously filed for bankruptcy protection in 2019, only to be rescued by Sparc Group—a joint venture between Authentic Brands Group, Simon Property Group, and Brookfield Asset Management. Following a brief rebound with $2 billion in revenue in 2021, the company’s financial woes resurfaced the following year, ultimately driving it back into bankruptcy.
Forever 21 is now under Catalyst Brands, an entity formed on January 8, 2025, through the merger of Sparc and the department store chain JC Penney. While Authentic Brands Group will retain ownership of Forever 21’s trademark and intellectual property, the future of its physical stores remains uncertain.
Is Forever 21 still in the Philippines?
For Filipino shoppers, it’s business as usual. While Forever 21’s U.S. stores will shut down, its locations outside the United States, which operate under separate licensees, are not affected by the bankruptcy filing. In the Philippines, you can still shop Forever 21 pieces on Zalora, Lazada, Shopee, and Tiktok Shop or visit its brick-and-mortar stores in SM Megamall, SM Mall of Asia, SM Aura Premier, SM Makati, SM North the Block, SM City Fairview, SM Southmall, SM City Cebu, SM CDO Premier, SM City Clark, SM Lanang Premier, SM City Bacolod, and Robinsons Magnolia.
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