The once-popular fashion brand Forever 21 is facing a significant crisis once again. The management company F21 OpCo.LLC filed for bankruptcy protection earlier this year, indicating the brand is struggling to find buyers for acquisition, and has announced the closure of 356 stores across the U.S., signaling the potential end of this former fast-fashion giant.

According to documents submitted by Forever 21 to the court, the company's assets range between $100 million and $500 million (approximately NT$3.02 billion to NT$16 billion), while its debts are between $1 billion and $5 billion (approximately NT$32.1 billion to NT$160.5 billion). The number of creditors is estimated to be around 10,000 to 25,000, reflecting the heavy debt burden the company faces.

Chief Financial Officer Sale stated that the primary reason for the bankruptcy is the rapid increase in operating costs and intense competition from overseas products, making it difficult for the existing business model to remain profitable. Starting in April, clearance sales began at stores nationwide, with most of them officially closing on May 1, while a few stores adjusted their closing dates based on their specific circumstances.

Additionally, Forever 21 had indicated in March its intention to submit a Chapter 11 reorganization plan, anticipating that about 200 store employees would be affected. WARN (Worker Adjustment and Retraining Notification) notices have been submitted in regions such as California and Pennsylvania, indicating that these employees will face significant layoffs, including at least 350 employees from the Los Angeles headquarters.

Forever 21 had entered the Taiwan market back in 2015, but fell short of expectations in performance and withdrew completely in March 2019. In April of the same year, it ended all online and physical sales in China, and ceased operations in Hong Kong and Japan by September, ultimately filing for bankruptcy, with plans to close all its stores in 40 countries worldwide.

This case of Forever 21 highlights the challenges faced by fast-fashion brands in the current economic environment, including pressures from rent and logistics costs, as well as the impact of e-commerce and market saturation, gradually constricting the space for brick-and-mortar retail businesses.