Forever 21 files for bankruptcy for second time in six years

Forever 21's U.S. division has filed for Chapter 11 bankruptcy on Sunday for the second time in six years. The fast-fashion retailer, known for its trendy and affordable clothing, has struggled with declining mall traffic and growing competition from online retailers.

The company announced plans to hold liquidation sales at its stores while also pursuing a court-supervised process to sell some or all of its assets. 

Forever 21 stated that if a sale is successful, it may shift from closing down operations to continuing as a going concern. The company confirmed that its U.S. stores and website will remain open and operational, while its international locations will not be affected.

The report states that Forever 21's estimated assets range between $100 million and $500 million. Its liabilities are estimated between $1 billion and $5 billion, with the number of creditors ranging from 10,001 to 25,000.