The U.S. branch of Forever 21 filed for bankruptcy on Sunday in a Delaware court, citing intense competition from international brands exploiting the de minimis import loophole.
F21 OpCo, the company that operates Forever 21’s roughly 350 U.S. stores, said in a statement that its U.S. stores and website will remain operational for now but that it plans to undergo an “orderly wind-down” of its domestic business.
