Forever 21 filed for Chapter 11 bankruptcy in September 2019.
The Los Angeles-based retailer made its filing on September 29, 2019, in the United States Bankruptcy Court for the District of Delaware. Chapter 11 allowed the company to continue operating while it attempted to reorganize its debts, leases, and store portfolio rather than immediately liquidating every location.
Forever 21’s difficulties reflected several pressures facing traditional fashion retailers: high store rents, rapid international expansion, competition from online shopping, and changing consumer tastes. The company announced plans to close a substantial number of stores, particularly in markets where its operations were no longer sustainable.
This question refers to the 2019 filing. Forever 21 later entered Chapter 11 bankruptcy protection again in March 2025, a separate event. That later filing does not make the 2019 answer incorrect; it simply means the company has experienced bankruptcy proceedings more than once.