Forever 21 files for bankruptcy, to wind down operations

RCS Real Estate Advisors has been retained by Forever 21 to market its U.S. lease portfolio, which includes approximately 360 store leases.

The operator of Forever 21 stores in the United States filed for bankruptcy protection citing fierce competition from Shein and Temu. It’s the chain’s second filing in six years. 

F21 OpCo, the operator of the formerly high-flying retailer, said it will start a wind down of Forever 21’s U.S. business while continuing to look for a buyer some or all of its assets. Liquidation sales have already started at the chain’s approximate 360 stores. (The bankruptcy filing does not affect Forever 21’s international stores.)

RCS Real Estate Advisors as been retained by Forever 21 to market and sell its U.S. lease portfolio, which includes approximately 360 store leases across major U.S. markets. Store sizes range from 4,000 to 150,000 sq. ft., with an average size of approximately 21,000 sq. ft.

Forever 21 has struggled in recent years amid increased online competition, particularly from Chinese budget retailers Shein and Temu, and the rising popularity of resale among teen shoppers. It listed assets of between $100 million and $500 million and liabilities of $1 billion to $10 billion in its filing.

The company said its U.S. stores and website will remain open and continue serving customers for now. Authentic Brands Group continues to own the intellectual property associated with the Forever 21 brand and may license the brand to other operators.