Forever 21 Files for Bankruptcy Again

The US operating company for Forever 21 filed for bankruptcy on Sunday, Mar. 16 for the second time in six years. 

The company is planning to reduce its domestic operations and put the onus for bankruptcy on higher costs and companies taking advantage of duty-free treatment of low-cost packages from China, which have undermined the fast-fashion retailer.

The US waivers tariffs and custom procedures on imported items shipped to individuals that are worth less than $800, which helps Chinese online retailers like Temu and Shein to keep prices for their items extra-low. 

US President Donald Trump stopped his administration's repeal of the clause in February, after rapid changes created disruptions.

Forever 21 declared bankruptcy with $1.58 billion debt after losing over $400 million during the last three years. 

The fast-fashion retailer lost $150 million in 2024 and was expected to lose approximately $180 million in 2025, according to documents filed in a Wilmington, Delaware bankruptcy court.