Forever 21 in the United States submitted bankruptcy on Sunday

American operating company 21 to Forever 21 Chapter 11 bankruptcy Sunday, on the occasion of the second time in six years.

The F21 OPCO took this step after the retail seller, who was one day known as reasonable costumes, was unable to find younger adults and adults, to find a buyer of nearly 350 American stores.

With most stores inside shopping centers, the retail seller says he was paralyzed due to high traffic and increased competition from online retailers.

“We were unable to find a sustainable path forward, given a competition from foreign fast fashion companies, which managed to benefit from exempt from the minimum to undermine our brand on prices and margin, as well as high costs, economic challenges that affect our basic customers, and develop consumer trends,”

Forever 21, the remaining stores are likely to be closed with the second bankruptcy approaching

DE Minimis refers to the United States’ waiver of standard customs procedures and definitions on imported elements of less than $ 800 charged to individuals. Some of the largest E -commerce competitors To the company is Amazon, Shein and TEMU.

Forever 21 was established in Los Angeles in 1984 by South Korean immigrants. By 2016, it managed about 800 stores worldwide, with 500 of them in the United States.

Forever 21 FASTE FASHION

The clothing series has faced problems since its first bankruptcy trip in September 2019, during which it closed more than 150 out of 534 stores and sold the rest.

Forever 21 is currently owned by Catalyst Brands, an entity formed on January 8 by merging the former owner of Forever 21, Sparc Group, and JC Penney, a chain of stores owned since 2020 by commercial center operators and Simon Property Group.

Forever 21 files to protect bankruptcy

Last month, when the bankruptcy news appeared on the horizon, he told a source familiar with Bloomberg that the company is preparing to close at least 200 of the remaining 350 sites as part of the bankruptcy process.

Now, Reuters reports, F21 OPCO plans Filter sales From its stores as it passes through the process of selling and marketing is free to the court for some or all its assets.

Pressure from Shin, Timo accelerate the closure of the retail sale

Its stores and location in the United States will remain open and continue to serve customers, and their international stores remain unattainable.

The company included its estimated assets in the range of $ 100 million to $ 500 million, according to the submission of a file with the bankruptcy court in the Reuters province, which was obtained by Reuters, and the opponents in the range of $ 1 billion to 10 billion dollars. The deposit showed that it contains between 10,001 and 25,000 creditors.

index	protection	last	Changing	% Change
amzn	Amazon.com Inc.	197.95	+4.06	+2.09 %
SPG	Simon Property Group Inc.	161.21	+1.73	+1.08 %
Bamy	Brookfield Assets Limited Management.	46.93	+1.31	+2.87 %

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In the event of a successful sale, Forever 21 may send away from a full range of operations to facilitate continuous treatment.

Forever 21 and other intellectual property owned by original brands. Authentic will continue to control the brand, which can live in some way. Jimmy Salter, CEO of Asilah Al -Aram, said last year that obtaining Forever 21 was “the biggest mistake.”

Fox Business’ Daniella Genovese and Reuters contributed to this report.