The American clothing chain Forever 21 is applying for bankruptcy protection in Delaware, USA, under a so-called Chapter 11 procedure. The application only concerns the American operations, as the other stores are run by independent licensees, writes Wall Street Journal.
During the process, both the chain's trade and physical stores will remain in operation.
Forever 21 opened its first store in the 80s and at its peak had over 800 stores in the USA, where it was seen as a competitor to Gap, Zara, and H&M in the fast fashion segment. The pandemic, however, hit the chain hard, and it is now the second time it is going through a Chapter 11 process.
