Forever 21 files for bankruptcy, stores in Asia & Europe to be shut

Iconic youth brand Forever 21 Inc. has filed for bankruptcy protection, joining the ranks of other big fashion merchants who couldn’t cope with high rents and heavy competition, as e-commerce platforms slice into their sales. 

Forever 21 has estimated liabilities of between $1 to $10 billion. A Chapter 11 filing allows the LA based company to keep operating, while it works out a plan to pay its creditors and turn around the business.

Forever 21 plans to exit most of its international locations in Asia and Europe, but stores will honor gift cards, returns and exchanges.