Forever 21 to close all its U.S. stores after filing for bankruptcy

(NBC, KYMA/KECY) - Forever 21, once a leader in youth fashion retail, is set to permanently close all its U.S. stores as it files for bankruptcy for a second time.

The operator of the brand's U.S. unit says foreign competition from fast-fashion rivals, rising costs, economic challenges and evolving consumer trends were to blame.

For the time being, stores and the company's U.S. website will remain open as Forever 21 starts winding down operations and seeks a last-minute bidder for its assets.

Forever 21's sales sales peaked at more than $4 billion in 2015.

The company filed for bankruptcy for the first time in 2019.

In its latest bankruptcy filing, Forever 21 listed assets of between $100 million and $500 million, and liabilities of $1 billion to $10 billion.