Forever 21 possibly heading to yet another bankruptcy

Forever 21 is facing another bankruptcy as soon as March 2025, in which 200 more underperforming stores could close, according to news reports.

The potential bankruptcy plan is seeking a buyer for the retailer’s remaining stores, but if no qualified buyer emerges, Forever 21 would liquidate the entirety of its approximately 350-store chain. At the height of its popularity, Forever 21 operated more than 500 locations in the U.S. and at least 800 worldwide.

The Forever 21 trademark and intellectual property are owned by Authentic Brands Group, which licenses them to the operating company that would undergo the Chapter 11 process. Authentic’s ownership of the Forever 21 brand would remain intact through the bankruptcy, so even if all stores close, Forever 21 apparel might still be sold at other stores in the future because Authentic would license the brand to other wholesalers and retailers.

Read more: Forever 21 Plans Hundreds of Store Closures in Second Bankruptcy (Bloomberg)