The US company company of Fast-Fashion-single dealers Forever 21 registered bankruptcy for Chapter 11 for the second time in six years.
The move probably means a liquidation for the company that could not find a buyer for its around 350 US branches.
The company said its international business was not affected.
The trademark and its intellectual property – which is still held by a company called Authentic Brands Group – can live on in a different form.
Mega mall era ends
The rise of e-commerce, paired with the slow death of the American Mega Mall, was a continuing headwind for Forever 21. It was submitted in 2019 for chapter 11 and was made by Sparc, a joint venture between the label owner between the label owner of authentic fire group and the shopping center operator Simon Property Group, and the Brookfield management management, from the Bought bankruptcy.
Forever 21 said that it would do liquidation sales in its shops and at the same time carry out a court sales and marketing process for some or all of his assets.
The company listed its estimated assets in the range of $ 100 to 500 million, as reported from a registration with the insolvency court in the District of Delaware, with the liabilities in the range of USD 1 billion to $ 10 billion. The submission also showed creditors in the range from 10.001 to 25,000.
In the event of a successful sale, Forever 21 said that operations could be completely processed to facilitate a process transaction.
The company said its business and his website in the USA will remain open and continue to serve customers.
Intellectual property could live on
Forever 21 is owned by Catalyst Brands, a company that was founded on January 8 to the merger of the previous owner, the Spark Group of Forever 21 from Forever 21, and JC Penney, owned by Mall Operators and Simon Property Group since 2020.
When Catalyst Brands was formed, it said in an explanation that it “researched strategic options for Forever 21”.
Authentic brands will continue to have for the trademark and the intellectual property of Forever 21, which could live on in any form.
The CEO of Authentic Brands, Jamie Salter, called “the biggest mistake I made” last year.
Forever 21 was founded in 1984 by South Korean immigrants in Los Angeles and was popular with young buyers looking for stylish but affordable clothing. By 2016, around 800 shops worldwide, 500 of those in the United States.
