Forever 21's parent company has filed for bankruptcy protection again, indicating a potential wind-down of U.S. operations unless a buyer emerges. Despite attempting to restructure after its 2019 bankruptcy, the brand has faced severe competition from online rivals like Shein and Temu, which capitalize on favorable shipping policies. The company's CFO noted challenges from rising costs and shifting consumer trends, leading to difficulties finding a sustainable business model. Founded by Korean immigrants and initially successful in making fashion accessible, Forever 21's fall from grace highlights the impact of evolving retail landscapes.
Forever 21's parent company filed for bankruptcy protection, aiming to wind down U.S. operations unless a buyer is found for parts or the entire business.
Despite a previous restructuring, the company has struggled to compete with online rivals like Shein and Temu, both benefiting from tax loopholes.
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