Forever 21 Files for Bankruptcy Amid $1.58 Billion Debt, Closes 354 Stores in the U.S.
American fast-fashion retail giant Forever 21 has announced its filing for bankruptcy protection, with debts amounting to $1.58 billion.
Founded in 1984, the company reached its peak with annual revenues exceeding NT$100 billion. Forever 21 entered the Taiwanese market in 2015 but announced its exit in 2019.
The company plans to cut more than 700 jobs in California and Pennsylvania while closing 354 stores across the U.S. At its height, Forever 21 was present in 48 countries, employing over 43,000 staff and generating $4.4 billion in annual revenue.
Due to rapid expansion and strategic management issues, the company struggled to maintain its market position, ultimately exiting the Taiwanese market in 2019 and retrenching from other Asian markets. Currently, Forever 21 is in bankruptcy proceedings without any potential buyers indicated.
