Fast-fashion retailer Forever 21’s U.S. operating company has filed for Chapter 11 bankruptcy for the second time in six years, driven by declining mall traffic and increasing competition from online retailers. This move signifies liquidation for the company, named F21 OpCo, as it failed to secure a buyer for its approximately 350 U.S. stores. However, Forever 21’s trademark and intellectual property, owned by Authentic Brands Group, may continue in a different form. Founded in Los Angeles in 1984 by South Korean immigrants, Forever 21 was once popular among young shoppers seeking stylish and affordable clothing. By 2016, it operated around 800 stores globally, with 500 in the United States. According to Brad Sell, F21 OpCo’s chief financial officer, the company could not find a sustainable path forward due to competition from foreign fast-fashion companies, rising costs, economic challenges affecting core customers, and evolving consumer trends. The de minimis exemption, which waives standard customs procedures and tariffs on imported items worth less than $800 shipped to individuals, has allowed competitors to undercut Forever 21’s pricing and margins. Forever 21 plans to conduct liquidation sales at its stores while undergoing a court-supervised sale and marketing process for some or all of its assets. Its U.S. stores and website will remain open during this period, and international stores will not be affected. The company estimates its assets to be between $100 million and $500 million, with liabilities ranging from $1 billion to $10 billion. In the event of a successful sale, Forever 21 might shift from a full wind-down to facilitate a going-concern transaction. Currently owned by Catalyst Brands, formed through the merger of Forever 21’s previous owner Sparc Group and JC Penney, the company is exploring strategic options for Forever 21. Authentic Brands Group will retain ownership of Forever 21’s trademark and intellectual property. — news from Reuters