Forever 21 bankruptcy files in the United States

Forever may be 21 steps closer to stopping operations in the United States after the brand operating company has made a request to protect bankruptcy.

The company said in a statement that its stores and location in the United States will remain open because it “begins to end.”

Forever 21 was preferred for young women all over the world, but it fought to attract customers to its stores due to the high prices and increasing popularity of online shopping.

The company applied for bankruptcy to protect The first time In 2019, but a group of investors ended through a joint project.

“We have not been able to find a sustainable path forward, given a competition from foreign fast fashion companies … in addition to high costs and economic challenges that affect our primary customers,” said Brad Cell, the company’s financial manager in a statement.

The company said that it will conduct liquidation sales in its stores and that some or all of its assets will be sold in a process under the supervision of the court.

“In the event of a successful sale, the company may arouse away from a full range of operations,” the company’s statement said.

Chapter 11 protects the obligations of an American company towards its creditors, which allows it time to reorganize its debts or sell parts of the work.

Forever 21 stores and e -commerce platforms outside the United States are operated by other licensing owners and will not be affected by the deposit of bankruptcy protection.

The fast retail company in Los Angeles was established in 1984 by South Korean immigrants.

Her clothes, inexpensive accessories, and accessories are increasingly common with young people over the next few decades, and the brand has become a competitor to fast fashion giants such as Zara and H&M.

At its peak in 2016, there were 800 Forever 21 stores around the world, 500 of which were in the United States.