National Retailer Saved 4 Years Ago May File Bankruptcy Again

A well-known fashion brand that’s all about trendy styles at wallet-friendly prices is in a bit of a bind. With competition from online powerhouses heating up, they’re now trying to figure out their next move. Could bankruptcy be on the table again?

Forever 21 might be heading back to Chapter 11 bankruptcy, just five years after its last go-round.

The fashion retailer, which operates over 500 stores, is figuring out what to do next, possibly looking for a buyer to avoid bankruptcy.

Saved From Bankruptcy in 2020

Mall owners Simon Property Group and Brookfield Corporation, alongside Authentic Brands Group, saved Forever 21 from liquidation by acquiring it out of bankruptcy in 2020.

Forever 21, which began in 1984 by a husband and wife team, has been struggling to keep up with fast-fashion rivals like Shein and Temu. In 2023, they even teamed up with Shein, but it didn’t exactly take off as hoped.

Reorganization Forms New Company

Recently, Forever 21's owners announced a reorganization, forming a new company called Catalyst Brands by combining several retail operations. Catalyst is reviewing strategic options for Forever 21's U.S. operations, while the brand and intellectual property remain with Authentic Brands and are not included in the review.

The first bankruptcy closed a number of stores including the one in Sangertown Square Mall.